White House crypto adviser David Sacks said traditional banks and digital asset firms are likely to converge into a single “digital asset industry” after Congress enacts long-pending market structure legislation. He made the remarks on CNBC’s Squawk Box on Wednesday during the World Economic Forum in Davos, Switzerland, in a discussion centered on the proposed CLARITY Act and its impasse over stablecoin yield.
Sacks said the question of whether stablecoin issuers may offer yield is the principal obstacle to advancing the bill. He added that lawmakers, banks, and crypto companies will need to reach a compromise to deliver a market structure framework for President Donald Trump to sign.
Pointing to the GENIUS Act as precedent, Sacks noted that the measure failed multiple times before becoming law and said banks should acknowledge that yield is already contemplated in the current approach. He urged the crypto sector to focus on securing comprehensive market structure rules, adding that once the bill is enacted, banks are expected to participate fully in digital assets, including stablecoins, leading to a unified industry over time.
Debate over the CLARITY Act
Policy disagreements regarding stablecoin yield have persisted for months and intensified last week when Coinbase publicly withdrew support for the CLARITY Act. Coinbase CEO Brian Armstrong wrote on X that the current draft contains “too many issues,” including prohibiting stablecoin yields while shielding banks from competition.
Banks contend that allowing high yields on stablecoins could trigger deposit outflows from traditional accounts, potentially drawing trillions of dollars from low-interest deposits.
The US GENIUS Act, enacted in July 2025, bars stablecoin issuers from paying yield, though third parties such as Coinbase remain permitted to offer rewards.
On Tuesday, Armstrong told CNBC’s Squawk Box that with the bill stalled in the Senate, there is an opportunity to re-engage with bank CEOs to find a “win-win” path forward.
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