Crypto Czar David Sacks Reveals He Sold His Digital Asset Holdings Before Trump Took Office

David Sacks, Trump’s recently appointed AI & Crypto Czar, confirmed on Monday that he sold all of his direct crypto holdings before officially stepping into his role under the Trump administration.

His disclosure follows mounting scrutiny over potential conflicts of interest, given his responsibility for shaping the administration’s legal framework for digital assets.

Correct. I sold all my cryptocurrency (including BTC, ETH, and SOL) prior to the start of the administration. https://t.co/dN6nuGQUtu

— David Sacks (@DavidSacks) March 3, 2025

Regulatory Role Puts David Sacks’ Crypto Ties Under Examination

Trump tapped Sacks, an ex-PayPal COO and a well-known venture capitalist, in Dec. 2024 to lead the government’s AI and crypto policy efforts. His primary task is to develop a clear regulatory framework that the crypto industry has long demanded.

Given the significance of this role, ensuring that he has no direct financial stake in the assets he is tasked with overseeing is crucial for maintaining credibility and avoiding regulatory bias.

Sacks’ confirmation came after the Financial Times reported on Sunday that his investment firm, Craft Ventures, still holds stakes in a few crypto startups. However, both Sacks and the firm sold their direct cryptocurrency holdings—including Bitcoin, Ethereum and Solana—shortly after Trump’s inauguration, according to sources cited in the report.

Can a Crypto Insider Regulate Fairly? Ethics Review Holds the Answer

Sacks is currently undergoing a government ethics review, after which he is expected to provide a comprehensive update on his remaining investments, the FT reported. While he no longer holds direct cryptocurrency assets, any indirect holdings through venture investments could still raise concerns about potential bias in policy decisions.

A longtime fixture in Silicon Valley, Sacks is a key member of the “PayPal Mafia”—a group of influential entrepreneurs that includes Elon Musk and Peter Thiel. Over the past two decades, this network has driven innovation across fintech, AI and crypto, leveraging its deep industry ties. Sacks further cemented his reputation as a tech leader after founding Yammer, which he sold to Microsoft in 2012 for $1.2b.

Trump’s Crypto Reserve Plan Boosts Market Confidence

Sacks’ disclosure comes right after Donald Trump announced the creation of a US strategic crypto reserve, which will include Bitcoin, Ether and several other digital assets. The decision marks a significant shift in US financial policy, further legitimizing digital assets at a national level.

Trump also confirmed that Bitcoin and Ether will serve as the reserve’s foundation, signaling a strong government endorsement of the two largest cryptocurrencies. The news sent markets soaring—Bitcoin jumped 8% to $93,007, rebounding from its lowest level since November. Ether climbed 9.7% to $2,438, while XRP surged 24.5% to $2.80, fueling an overall crypto market rally of nearly 8%.