- david sacks says banks and crypto will merge into one digital asset industry after Congress passes a market structure bill, with compromise on stablecoin yield
- Coinbase withdrew support for the CLARITY Act over stablecoin yield limits, while the GENIUS Act bars issuer yields but allows third-party rewards
White House crypto czar david sacks said banks and crypto companies will ultimately merge into “one digital asset industry” once Congress passes a long-delayed market structure bill. Sacks made the comments during an interview on CNBC’s Squawk Box on Wednesday at the World Economic Forum in Davos, Switzerland, as negotiations continue on the proposed CLARITY Act, which has stalled amid debate over whether stablecoin issuers should be permitted to offer yield.
David sacks on the market structure bill and the yield impasse
During the Davos interview, david sacks described the yield debate as the primary obstacle to advancing the CLARITY Act. He said lawmakers, banks, and crypto companies will need to compromise to get a market structure bill to US President Donald Trump to sign into law. In discussing the path forward, Sacks pointed to the GENIUS Act as an example, noting that the bill failed multiple times before ultimately becoming law. He also said banks should recognize that yield is already a feature within the legislation.
Sacks urged the crypto industry to “see the bigger picture,” saying he understands that “yield is philosophically important to them,” but added that getting an overall market structure bill matters as well. He said that once the bill passes, banks are expected to move fully into crypto. He framed that shift as a future where there is no separate banking and crypto sector, but instead “one digital asset industry.” Sacks added that, over time, banks will like the idea of paying yield because they will be in the stablecoin business.
CLARITY Act negotiations sharpen as Coinbase withdraws support
The dispute between traditional banks and crypto companies over stablecoin yield has simmered for months, and 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 have argued that allowing stablecoins to offer high yields could prompt a deposit flight from traditional bank accounts. They have warned this could pull trillions of dollars out of low-interest savings accounts. The conflict is now central to the stalled status of the market structure bill, with the question of yield shaping how both sides assess competition and consumer behavior in a stablecoin market.
GENIUS Act precedent and the remaining room for rewards
The GENIUS Act became law in July 2025 and is now being referenced in the current debate. Under that law, stablecoin yields were prevented from being offered by token issuers. However, third parties such as Coinbase are still legally able to offer rewards, leaving an avenue for yield-like incentives even with restrictions on issuers themselves.
Armstrong, speaking on CNBC’s Squawk Box on Tuesday, said that since the bill has stalled in the Senate, “there’s an opportunity for us to come back and chat with the bank CEOs, and see what would create a win-win outcome here.” The comment underscored that negotiations are still fluid, and that stablecoin yield remains a central issue for both the banking sector and crypto firms as they weigh support for the CLARITY Act.
Conclusion
As the CLARITY Act remains stalled, david sacks has argued that compromise is necessary to deliver a market structure bill for President Donald Trump to sign. He has also tied the outcome to a broader shift, saying passage would accelerate banks’ entry into crypto and lead to “one digital assetindustry,” with stablecoin yield continuing to define the most contested ground in the negotiations.
Disclaimer
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