Crypto Industry Cheers as Trump Names David Sacks AI & Crypto ‘Czar
Crypto Industry Cheers as Trump Names David Sacks AI & Crypto ‘Czar
In a decision that shocked numerous U.S. cryptocurrency sector members, President-elect Donald Trump declared that Silicon Valley tech entrepreneur David Sacks would be the inaugural White House AI and crypto “czar.”
Sacks, aged 52, is a billionaire technology leader, venture capitalist, and podcaster who accrued his wealth through the development of several successful tech enterprises, such as PayPal and Yammer, a workplace social networking platform he sold to Microsoft in 2012 for $1.2 billion. He shares a close friendship with Tesla CEO Elon Musk and is a key adviser to the president-elect, playing a significant role in discussions concerning crucial administration appointments. Additionally, he maintains a good relationship with Vice President-elect J.D. Vance and was an early backer of Vance’s venture capital company, Narya Capital.
“In this significant position, David will oversee the policy of the Administration concerning artificial intelligence and cryptocurrency, both essential to enhancing America’s competitiveness,” Trump said in a statement shared on his Truth Social account Thursday evening. “David will concentrate on positioning America as the foremost global leader in these sectors.” Among Sacks’ duties, as noted by Trump, will be assisting in developing a legal framework for the $3 trillion cryptocurrency industry and leading the President’s Council of Advisors on Science and Technology, a group focused on providing the White House with guidance on technology and innovation policy.
Earlier reports from FOX Business indicated that the Trump transition team was exploring establishing a White House position focused explicitly on promoting cryptocurrency policy, with Chris Giancarlo, the former CFTC chairman known as “Crypto Dad,” a prime candidate for the role. However, including artificial intelligence in the discussion expanded the pool of potential candidates, and Sacks has emerged as a leading voice on how AI could revolutionize business and technology. Through his venture capital firm, Craft Ventures, which he started in 2017, Sacks has invested in AI startups, including xAI and copy.ai.
The alignment of cryptocurrency and artificial intelligence under a single policymaking framework has pleasantly surprised many within the digital asset sector and lawmakers who support crypto. They view the two fields as synergistic and pivotal for the technological advancement of the U.S.
“I appreciate that the Trump administration’s choice of David Sacks signals the White House’s recognition that cryptocurrency and AI are the most critical emerging technology sectors for both the United States and globally,” remarked Jeremy Allaire, CEO of stablecoin firm Circle.
“David Sacks is an excellent choice!” Coinbase CEO Brian Armstrong commented on his X account. “It’s remarkable to consider the possibilities that arise with capable, pro-technology, and pro-business individuals in governmental roles.”
Jake Chervinsky, the chief legal officer at the crypto investment firm Variant, indicated that this appointment shows the new administration aims to revive growth in two sectors where the U.S. has lagged behind nations with less stringent regulations.
“For those doubting whether crypto and AI should be handled together in policy, understand that the main directive for the government regarding both is this: Stay out of the way,” he noted in a post on X. “Certainly, the moment will arrive for new legislations and regulations, but initially, David Sacks can empower innovators to create.”
While some individuals in the crypto industry worry that Sacks may not be sufficiently pro-crypto for his role, the tech executive has consistently supported crypto and blockchain for several years. In a 2017 interview, he stated that Bitcoin embodies the original vision of PayPal to establish a “new world currency,” something advocates of the leading digital currency envision it becoming. Sacks has openly criticized excessive government regulation concerning crypto and AI on the popular “All In” podcast that he co-hosts with Chamath Palihapitiya, Jason Calacanis, and David Friedberg. He has also invested in crypto-focused companies, such as Bitwise and BitGo, through Craft Ventures.
Trump’s selection of Sacks highlights the significant power of the so-called “PayPal Mafia,” a group of about ten company founders, including Musk, Sacks, and venture capitalist Peter Thiel, poised to exert considerable influence in the new administration. Thiel, who co-founded the data software firm Palantir, is a friend and former mentor of Trump’s Vice-President-elect JD Vance, and Thiel played a significant role in Vance’s appointment. Meanwhile, Musk will head the new Department of Government Efficiency Council, working alongside Vivek Ramaswamy to propose cuts totaling trillions of federal spending.
Both Sacks and Musk contributed substantial funding to Trump throughout his campaign. Sacks raised at least $12 million for the presiding-elect during a fundraiser hosted at his home in Silicon Valley in June, while Musk is believed to have raised over $100 million.
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