The divide between the cryptocurrency sector and traditional banking is expected to disappear as new U.S. legislation reshapes how digital assets are regulated, according to the White House’s top adviser on artificial intelligence and crypto. David Sacks said banks and crypto firms are on a path toward becoming a single digital assets industry once market structure rules are finalized. His comments reflect the administration’s view that regulatory clarity will unlock deeper institutional participation, removing the barriers that have kept many large banks on the sidelines. For years, uncertainty around oversight and compliance has limited direct engagement with crypto markets by traditional financial institutions. Sacks argued that this separation is artificial and temporary, driven more by regulatory gaps than by fundamental differences between banking services and blockchain-based finance.
Stablecoins are likely to play a central role in this convergence. Sacks suggested that banks may ultimately see stablecoin issuance as an opportunity rather than a threat, particularly as legislation standardizes oversight across the sector. By issuing stablecoins, banks could offer new digital payment and savings products while competing directly with fintech and crypto-native firms. The debate around stablecoin yield has become a focal point in ongoing negotiations, with banks lobbying against allowing nonbank issuers to offer rewards. Sacks acknowledged these concerns but said the goal of the legislation is to ensure that similar products are regulated consistently, regardless of whether they are offered by a bank or a crypto company. In his view, balanced rules will reduce friction and encourage broader participation across the financial system.
The push for integration follows earlier legislative steps aimed at defining the regulatory perimeter for digital assets. Supporters argue that clearer rules will reduce risk, encourage innovation, and allow established institutions to enter crypto markets without fear of sudden enforcement shifts. Sacks framed the process as a compromise that will leave no group entirely satisfied but ultimately create a more stable and competitive environment. As banks, fintech firms, and crypto companies prepare for this shift, the administration’s message is that digital assets are not a parallel system but an extension of modern finance. If the legislation succeeds, the future financial landscape may be defined less by institutional labels and more by shared digital infrastructure.
