David Sacks, the newly appointed AI and crypto czar in the White House, has taken pivotal steps to mitigate potential conflicts of interest by divesting over $200 million in cryptocurrencies and crypto-related stocks. A memorandum released by the White House confirmed that Sacks and his venture capital firm, Craft Ventures, have sold significant holdings to ensure transparency and integrity in his new role.
Sacks personally divested approximately $85 million worth of positions related to the digital asset industry, including well-known cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). This decision came just before President Donald Trump’s inauguration on January 20th, ensuring that Sacks would not face allegations of favoritism or conflicts stemming from his previous investments.
According to the memorandum dated March 5, Sacks’s actions highlight a proactive approach towards establishing a clean slate in a role centered on shaping the legal framework for the crypto sector. Alongside his cryptocurrency assets, he also divested from key public companies like Coinbase and Robinhood, as well as private equity interests in blockchain-focused firms such as Multichain Capital and Blockchain Capital.
The decision to divest comes amidst a turbulent time for the cryptocurrency market, which has recently experienced a downturn following Trump’s inauguration. Bitcoin, after hitting a record high of $109,000, has since fallen below $80,000, leaving many investors contemplating the effects of regulatory uncertainties and proposed tariffs. As of now, Bitcoin is trading at approximately $84,155.
Controversially, Massachusetts Senator Elizabeth Warren has publicly challenged Sacks to provide clear evidence of his divestment claims. In a letter dated March 6, she requested detailed disclosures to ensure transparency concerning his financial interests. Senator Warren’s inquiries reflect broader concerns regarding the potential influence of previous investments on policy-making in the fast-evolving landscape of cryptocurrency regulation.
Since assuming his role, Sacks has become a prominent advocate for the cryptocurrency sector, emphasizing the need for a Strategic Bitcoin Reserve and caution against over-taxation of digital assets. His recent appearance on the All In Podcast, where he dismissed the feasibility of taxing cryptocurrency transactions, underscores his commitment to fostering a supportive environment for innovation in this emerging field.
