A senior White House adviser suggested that traditional banks will eventually be unable to stay out of the crypto market, as yield-bearing stablecoins become increasingly popular and legalized in the US.
Speaking to the media, David Sacks, a White House advisor on artificial intelligence and digital assets, stated that crypto, stablecoins, and the traditional banking system will converge into a unified digital asset industry once the US finalizes a clear legal framework for the sector.
Profitable stablecoins create direct competitive pressure on banks.
According to David Sacks, the key reason banks cannot ignore crypto lies in stablecoins with yields. When users can hold stablecoins that offer both price stability and on-chain returns, traditional deposit products will face increasing competitive pressure.
He stated that mechanisms for generating yields for stablecoins are already "built into" the draft GENIUS Act – a law being pushed by the US Congress to create a legal framework for stablecoins and the digital asset market. This means that if banks continue to oppose stablecoins, they could undermine their own position in the new financial ecosystem.
Banks will have to become players, not just observers.
According to White House advisors, instead of trying to curb stablecoins, banks should be forced to participate directly: issuing, depositing, integrating stablecoins into financial products, and leveraging blockchain infrastructure to optimize operating costs.
"Ultimately, stablecoins will become a core product of digital banking," Sacks stated, adding that as traditional financial institutions enter the game, the lines between crypto and banking will gradually blur.
