US Senator Elizabeth Warren has raised concerns about David Sacks’ role as the “White House AI & Crypto Czar” and potential conflicts of interest. In a letter, the industry critic requested immediate clarifications on various issues, including the timeline of Sack’s divestment of his digital asset holdings.
Crypto Czar Faces ‘Conflict Of Interest’ Allegations
US Senator Elizabeth Warren, Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs, sent a letter to President Donald Trump’s Crypto and AI Czar David Sacks, asking how he has addressed his potential conflicts of interest.
In her March 6 letter, Warren affirmed that the recent announcements of Strategic Crypto and Bitcoin Reserves have raised questions about Sacks’ investments in digital assets, including the five assets initially proposed last Sunday.
Excerpt from Sen. Warren’s letter to David Sacks. Source: Senate Banking Committee
On March 2, President Trump announced the establishment of a “US Crypto Reserve” comprised of Cardano (ADA), Solana (SOL), and XRP, with Bitcoin (BTC) and Ethereum (ETH) at its heart.
Following the news, Sacks addressed concerns about his digital asset holdings and connections to digital asset companies, revealing he had sold all his holdings, including BTC, ETH, and SOL, before the start of the Trump administration. “I took it upon myself to sell all my cryptocurrency and my crypto-focused funds. I suggest you wait for all the facts before making baseless and hysterical smears,” he explained.
Regarding Sacks’ links to Bitwise Asset Management, the company’s CEO, Hunter Horsley, affirmed that Craft Ventures, the venture capital firm Sacks co-founded in 2017, started the process of divesting from Bitwise over two months ago and was already completed. Sacks also clarified that he fully exited his $74,000 position in the Bitwise ETF on January 22.
According to the Senator, “It remains unclear exactly when you personally divested from BTC, ETH, and SOL” and “when Craft Ventures divested from Bitwise,” despite Sacks’recent X statements. Moreover, she questioned whether people close to Sacks “may have held positions and sold into the recent price surge.”
Sen. Warren Seeks Answers By Next Week
In the letter, Warren also requested information on how the Crypto Czar will “prevent the President and other private individuals from directly profiting off of the Trump Administration’s efforts to selectively pump the value of certain crypto assets.”
On March 6, the US President signed an executive order establishing a Strategic Bitcoin Reserve and a “Digital Asset Stockpile” comprised of crypto seized from government criminal and civil forfeiture proceedings.
Warren considers the reserve “the most recent example of a Trump Administration crypto policy with the potential to benefit a wealthy, well-connected few at the expense of taxpayers.” As a result, she requested that Sacks provide answers and documentation to her nine concerns by March 14, 2025.
Sen. Warren asks for information about potential conflicts of interest by federal employees. Source: Senate Banking Committee
These requests include the exact timeline of the Crypto Czars’ and Craft Ventures’ divestment, information about who knew and was involved in the recent strategic reserve announcements, and how many Federal employees are subject to conflicts of interest laws.
The senator also questioned the Securities and Exchange Commission (SEC)’s recent decision to drop several of its ongoing crypto-related litigations and investigations without enforcement actions, including Coinbase.
She also criticized the SEC’s recent statement asserting that most memecoins are not securities, which “has the potential to directly benefit President Trump and First Lady Melania Trump, who launched two meme coins, $TRUMP, and $MELANIA, during President Trump’s inauguration weekend.”
Bitcoin trades at $89,711 in the one-week chart. Source: BTCUSDT on TradingView
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