Will yield-bearing stablecoins force banks into the crypto industry? David Sacks offers new insights

White House advisor David Sacks says banks, stablecoins and crypto will merge into one digital asset industry as U.S. rules evolve and stablecoin yields go mainstream.

David Sacks, a White House advisor on cryptocurrency policy, said the divide between traditional banking and digital assets is expected to end as regulatory frameworks take shape, according to a recent interview.

Sacks stated that cryptocurrencies, stablecoins, and banks will ultimately merge into a single digital asset industry. He said that once comprehensive crypto market structure legislation is passed, banks will enter the crypto space at scale, erasing the boundary between traditional finance and blockchain-based systems.

A central debate in current U.S. crypto legislation concerns whether stablecoin issuers should be permitted to pay yield to holders. Sacks explained that opposition from banks centers on this issue, though he noted that some form of yield is already embedded in the GENIUS Act, meaning the mechanism will likely exist regardless of resistance.

According to Sacks, if banks fail to reach a compromise, they risk losing ground as yield-bearing stablecoins emerge under existing laws. He stated that a comprehensive market structure law is more important than any single provision.

Sacks said banks will initially resist yield-bearing stablecoins, but that position will change once they become active participants in the stablecoin business themselves. Over time, banks are expected to view yield as a competitive advantage within a unified digital asset framework, he said. Once regulatory clarity is established, stablecoins could become a core product for both crypto-native firms and traditional financial institutions, according to Sacks.

Sacks also addressed U.S.-China competition in artificial intelligence and semiconductor technology. He noted that China is increasingly focused on self-sufficiency, particularly through domestic companies like Huawei. China is building its own technology ecosystem rather than relying on U.S. chipmakers, he said.

The U.S. strategy has been to allow China access to older-generation chips in order to slow Huawei’s expansion by capturing market share, according to Sacks. However, he acknowledged that this approach may become less effective as China continues moving toward technological independence.

Sacks drew a contrast between regulatory environments under different administrations, arguing that under Donald Trump, the technology sector experienced stronger support and less regulation compared to the Biden administration. In his view, reduced regulatory pressure allowed innovation to move faster across both crypto and AI sectors.

Sacks also commented on the recurring idea of the United States acquiring Greenland. He stated that U.S. interest in Greenland dates back approximately 150 years, and that Trump brought the topic back into public discussion rather than introducing a new geopolitical concept.

The comments suggest that U.S. crypto policy is moving toward integration rather than isolation of digital assets from traditional finance, according to the interview. Stablecoins, banks, and blockchain infrastructure are increasingly being treated as components of the same financial system.

If regulatory clarity is achieved and institutional participation expands, crypto adoption could accelerate, Sacks indicated. The advisor’s statements point to a shift in which crypto may be viewed not as an alternative system but as a foundational layer of modern finance.