White House AI and Crypto Czar David Sacks has confirmed that the landmark Digital Asset Market Clarity Act (CLARITY Act) is officially heading for a critical Senate committee markup, signaling a potential end to years of regulatory limbo for the U.S. cryptocurrency sector. Speaking in a high-profile interview on CNBC’s Squawk Box from Davos, Sacks delivered a bold prediction that has sent shockwaves through both Wall Street and Silicon Valley: the passing of this legislation will trigger the "total integration" of traditional banking and digital assets, effectively ending the era of a segregated crypto economy.

The CLARITY Act 2026: A Regulatory Turning Point

The movement of the CLARITY Act to the markup phase represents the most significant legislative advance for digital asset regulation in American history. Scheduled for review by the Senate Agriculture Committee on January 27, 2026, the bill aims to finally resolve the debilitating jurisdictional turf war between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

Under the proposed framework, the legislation provides clear statutory definitions distinguishing "digital commodity assets"—such as Bitcoin—from securities. This distinction is designed to empower the CFTC with primary oversight over decentralized assets, stripping away the enforcement-heavy approach that characterized the SEC's strategy in previous years. "We are creating the rules of the road that will allow institutional capital to flow freely," Sacks stated, emphasizing that the bill is 80% similar to the version that passed the House with bipartisan support last summer.

Solving the Jurisdiction Puzzle

For years, the lack of clarity on SEC vs CFTC crypto jurisdiction has stifled innovation and driven American companies offshore. The CLARITY Act 2026 addresses this by establishing a registration regime for digital asset exchanges that allows them to trade both commodities and securities under a unified compliance framework. This "market structure" bill is widely seen as the missing piece of the puzzle needed to unlock institutional crypto adoption at a sovereign scale.

"One Digital Assets Industry": The Banking Integration Thesis

The most explosive takeaway from Sacks' CNBC appearance was his vision for the immediate future of finance. The Crypto Czar explicitly rejected the idea that crypto and banking will remain parallel systems. Instead, he forecasts a rapid and total Bitcoin banking integration once the legal guardrails are signed into law.

"I think what's going to happen is that after market structure passes, the banks are going to get fully into the crypto industry," Sacks told CNBC. "So we're not going to have a separate banking industry and crypto industry. It's going to be one digital assets industry."

This prediction aligns with recent trends seeing major incumbents like Visa, PayPal, and Wall Street giants piloting proprietary stablecoins and tokenized deposit networks. According to Sacks, the legislation will remove the final compliance barriers preventing national banks from offering direct custody, trading, and yield-bearing crypto products to retail and institutional clients.

The Stablecoin Standoff: A Call for Compromise

Despite the optimism, the path to the President's desk faces a final hurdle: the contentious issue of stablecoin yields. The current draft of the Senate Banking Committee's companion bill faced delays earlier this month after industry heavyweights like Coinbase expressed concern over provisions that might restrict non-bank issuers from offering rewards or interest on stablecoins—a feature banks are keen to monopolize or heavily regulate.

Sacks addressed this conflict directly, urging US Senate crypto bill negotiators and industry leaders to see the bigger picture. "I'm in favor of reaching a solution and facilitating a compromise so that we can get a bill for market structure on the president's desk," he urged. Sacks warned traditional banks that if they stall the legislation, they risk losing ground to entrenched crypto-native firms. Conversely, he advised crypto advocates that yielding on some "philosophical" points regarding rewards might be the necessary price for achieving broader legitimacy and survival.

Market Impact: Bitcoin at $90,000 and Beyond

The renewed legislative momentum comes at a time of fervent market activity, with Bitcoin hovering near the $90,000 mark amidst the "Trump Trade" optimism. Analysts believe that the passage of the CLARITY Act could be the catalyst that drives the next leg of the bull market, legitimizing the asset class for pension funds and sovereign wealth managers who have remained on the sidelines.

With the Senate Agriculture Committee proceeding with its markup and the White House throwing its full weight behind the bill, the likelihood of a comprehensive digital asset regulation framework emerging in Q1 2026 has never been higher. As Sacks concluded, the window for separation is closing: "The banks are going to get fully into the crypto industry... It is in their interest to work something out."