White House crypto czar David Sacks predicts banks and crypto companies will merge into one digital asset industry after the market structure bill passes. The yield debate is a major hurdle in negotiations, with banks and crypto firms needing to compromise for the legislation to reach President Trump for approval.

The ongoing dispute over stablecoin yields has escalated, with Coinbase withdrawing support for the CLARITY Act. Banks fear high yields could lead to a deposit flight from traditional bank accounts, draining trillions of dollars from low-interest savings. The GENIUS Act prohibits stablecoin yields by token issuers, but third parties like Coinbase can still offer rewards.

Coinbase CEO Brian Armstrong expressed concerns about the bill, noting issues such as eliminating stablecoin yields and protecting banks from competition. With the bill stalled in the Senate, there is an opportunity for dialogue between crypto firms and bank CEOs to find a mutually beneficial solution. The debate intensifies as both sides seek to protect their interests in the evolving digital asset industry.

Read more at Cointelegraph: Sacks Says Banks and Crypto Will Merge Into One Digital Asset Industry