Crypto: Us Crypto Czar Sacks Says Banks, Crypto Will Merge Into 'one...
In an interview from the WEF in Davos, David Sacks addressed disputes over stablecoin yield and the crypto market structure legislation that's stalled in the US Senate.
White House crypto czar David Sacks said banks and crypto companies will ultimately merge into “one digital asset industry” once Congress passes the long-delayed market structure bill.
The comments came during an interview on CNBC’s Squawk Box on Wednesday at the World Economic Forum (WEF) in Davos, Switzerland, where Sacks was asked about the negotiations around the proposed CLARITY Act, a market structure bill that has stalled amid debate over whether stablecoin issuers should be permitted to offer yield.
Sacks said the yield debate has become the primary obstacle to advancing the legislation, but noted that lawmakers, banks and crypto companies must compromise to get a market structure bill to US President Donald Trump to sign into law.
He pointed to the GENIUS Act as an example, noting that the bill failed multiple times before ultimately becoming law, adding that banks should recognize that yield is already a feature within the legislation.
Sacks also urged the crypto industry to “see the bigger picture,” saying that he understands “yield is philosophically important to them, but so is getting an overall market structure bill,” Sacks said, adding:
Related: Central banks vs Bitcoin: Who deserves the public’s trust?
The dispute between traditional banks and crypto companies over whether stablecoins should be allowed to pay yield has simmered for months, but intensified last week when Coinbase publicly withdrew its support for the CLARITY Act.
Coinbase CEO Brian Armstrong said on X that there were “too many issues” with the current draft of the bill to support it, including eliminating stablecoin yields while insulating banks from competition.
Banks argue that allowing stablecoins to offer high yields could prompt a deposit flight from traditional bank accounts, potentially pulling trillions of dollars out of low-interest savings accounts.
Source: CoinTelegraph
