- David Sacks and Craft Ventures sold over $200 million in crypto assets and related stocks before his White House appointment.
- Despite divestments, scrutiny persists over potential conflicts of interest and policy influence.
David Sacks, the newly appointed White House AI and crypto czar, offloaded over $200 million in digital assets and crypto-related stocks before assuming his role. A White House memorandum dated March 5 confirmed that Sacks personally accounted for $85 million of the sales. He divested major crypto assets like Bitcoin (BTC), Ether (ETH), and Solana (SOL). Sack’s firm, Craft Ventures, also exited major holdings in Coinbase (COIN), Robinhood (HOOD), and private crypto-focused investment firms.
The divestment was aimed at eliminating potential conflicts of interest as Sacks transitioned into his government position, where he is expected to shape crypto regulations. “You and Craft Ventures have divested over $200 million of positions related to the digital asset industry, of which $85 million is directly attributable to you,” the memorandum stated.
Sacks confirmed the sell-off in a March 3 disclosure, noting that the liquidation was completed before President Donald Trump’s inauguration on January 20. However, the timing has drawn attention, as Bitcoin surged to an all-time high of $109,000 just before the inauguration before plummeting below $80,000 in February amid broader market uncertainty.
Sen. Warren Demands Proof Amid Rising Scrutiny
Despite the large-scale divestments, skepticism remains. Massachusetts Senator Elizabeth Warren has called for greater transparency, demanding Sacks provide clear evidence of his complete exit from digital assets. In a March 6 letter, Warren raised concerns over the exact timing of the sell-off and whether those close to Sacks could have benefited from the price surge.
“Despite your public statements via X, it remains unclear exactly when you personally divested from BTC, ETH, and SOL, when Craft Ventures divested from Bitwise, and whether people close to you may have held positions and sold into the recent price surge,” Warren wrote.
This isn’t the first time Sacks has faced scrutiny. Critics argue that despite liquidating his crypto assets, he still holds indirect exposure through Craft Ventures’ venture capital funds. The White House, however, has granted him a limited ethics waiver, allowing participation in digital asset policy matters under specific conditions.
Sacks’ Crypto Stance: Regulation Without Overreach
Since assuming his White House role, Sacks has positioned himself as an advocate for a balanced regulatory approach. He has supported initiatives like a Strategic Bitcoin Reserve while opposing excessive taxation on crypto transactions. In a recent episode of the All In Podcast, he criticized a proposed 0.01% tax on crypto transactions, comparing it to the gradual expansion of the income tax system.
“That’s always how taxes start. They are described as being very modest,” Sacks warned, emphasizing the need to prevent over-regulation that could stifle innovation.
Despite controversy, Sacks remains a key figure in shaping U.S. crypto policy. His influence, combined with his previous market involvement, ensures that his decisions will continue to be closely watched by both regulators and the crypto industry.
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