White House Crypto Czar Declares: Banks and Crypto Are Merging Into One Industry
The walls are coming down. The White House's top digital asset advisor just dropped a bombshell prediction that reshapes the entire financial landscape.
The Great Convergence is Here
Forget 'crypto versus banks.' The new narrative is fusion. The regulatory gatekeepers and the decentralized rebels are headed for the same boardroom. It's not an invasion; it's a merger of titans, with legacy infrastructure meeting blockchain's ruthless efficiency.
Why This Isn't Just Talk
Watch the capital flows. Institutional custody solutions are multiplying. BlackRock's tokenized fund was just the opening act. Major banks are quietly building digital asset divisions—not as side projects, but as core future revenue lines. The smart money stopped betting against crypto and started buying the whole casino.
The tech stacks are already intertwining. Settlement layers that talk to both legacy rails and smart contracts are live. Compliance tools that track on-chain activity are now standard issue in corporate treasuries. The plumbing for a unified system is being installed, pipe by pipe.
The New Power Dynamics
This merger won't be a cozy partnership of equals. Crypto brings the network, the speed, and a user base that treats 9% APY as a slow day. Traditional finance brings the balance sheets, the regulatory relationships, and, let's be cynical, a centuries-old mastery of collecting fees for moving money around.
The real tension? Culture clash. Bankers live in a world of quarterly reports and risk committees. Crypto operates on internet time and 'code is law.' Merging those mindsets will be messier than any technical integration.
The Bottom Line
Prepare for a hybrid future. Your mortgage might be tokenized on a blockchain your bank manages. Your investment portfolio will hold digital natives alongside tokenized stocks. The distinction will blur until it's meaningless—just 'finance.'
The skeptics who called crypto a passing fad missed the plot. It wasn't about destroying the system; it was about becoming the system. The ultimate finance jab? The most revolutionary outcome might just be a more efficient way for banks to do exactly what they've always done.
One industry is coming. Whether it wears a suit or a hoodie is the only question left.
Sacks argued that the crypto industry should support the CLARITY Act to be approved soon
Following Sacks’ remarks, reporters reached out to the US official to request a comment on the progress of the proposed CLARITY Act, which has been postponed amid heated debate over whether it is wise to allow stablecoin issuers to provide yield. In response to this request, the crypto leader began by admitting that the ongoing debate is stalling the legislation.
Afterwards, Sacks called on lawmakers, banks, and crypto companies to find common ground to pass the market structure bill and send it to US President Donald TRUMP for a signature to become law.
However, he pointed out that he was not shocked to see the bill facing hardships, arguing that the GENIUS Act also encountered several challenges but later became law. Still, the crypto leader released a statement addressed to banks, claiming that they need to understand that yield is already accounted for in current legislation.
For the crypto industry as a whole, Sacks urged a broader, strategic view of the current situation, asserting that getting the market structure bill approved is just as crucial as yield and that it should be the industry’s main focus.
To break this point down, he mentioned that, “Once this bill passes, banks will fully enter the crypto field. We won’t have separate banking and crypto sectors; instead, there will be one digital asset industry. Over time, banks will appreciate offering yield since they’ll be involved in stablecoins.”
Uncertainties surround the CLARITY Act
Debates between traditional banks and crypto firms over whether it is advisable to permit stablecoins to earn interest have heated up for several months now. Last week, the situation intensified when Coinbase announced it WOULD drop support for the CLARITY Act.
This was after Brian Armstrong, CEO of Coinbase, shared an X post claiming that, “there were too many problems with the current version of the bill, including its aim to stop stablecoins from offering yields while protecting banks from competition.”
At this moment, banks cautioned that if, by any chance, stablecoins receive the go-ahead to offer high interest rates, individuals exploring the crypto sector might be forced to shift their focus away from traditional bank accounts. This MOVE is set to bring about significant losses from low-interest savings accounts.
Meanwhile, it is worth noting that after the United States GENIUS Act was approved in July 2025, the bill halted token issuers from providing stablecoin yields. Even with this halt in place, third-party firms such as Coinbase have been permitted to legally offer rewards.
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