At a White House briefing on February 28, 2026, venture capitalist and advisor David Sacks called on traditional banks to show flexibility, arguing the cryptocurrency industry has already made "meaningful concessions" in the ongoing regulatory standoff. Sacks highlighted the growing tension, centered on stablecoin yield programs, which allow users to earn returns by holding or lending dollar-pegged digital tokens.
The core conflict revolves around banks viewing these yield products as direct competitors to traditional interest-bearing savings accounts. Banking groups have consequently pressured lawmakers to limit these features. In response, Sacks noted that crypto companies have proactively adjusted, with some reducing or restructuring their yield programs and others pausing certain products to mitigate financial risk and address banking sector concerns.
Sacks emphasized that innovation should not be stifled to protect legacy systems and urged for a two-way compromise. The discussions are occurring against the backdrop of the proposed CLARITY Act, legislation aimed at creating clear rules for digital assets. Crypto advocates argue clear legislation will enable responsible growth in the U.S., while banks insist on strict rules for customer protection and risk reduction.
Envisioning future integration, Sacks sees a path where banks and crypto firms collaborate. He also disclosed selling approximately $200 million in crypto holdings before assuming his advisory role to avoid conflicts of interest. Negotiations continue, with the potential for a more unified U.S. financial system if both sides make concessions.
