TLDR

• David Sacks, White House AI and crypto czar, confirmed he sold all his cryptocurrency holdings (BTC, ETH, SOL) before Trump’s inauguration
• His venture capital firm Craft Ventures also sold direct crypto holdings but maintains investments in crypto startups
• Trump will host the first White House Crypto Summit on March 7 with industry leaders
• Trump announced plans for a strategic crypto reserve, causing markets to soar 12%
• Sacks stated he had a $74k position in the Bitwise ETF which he sold on January 22

White House AI and crypto czar David Sacks has confirmed that he sold all his cryptocurrency holdings before taking his position in the Trump administration. The former venture capitalist made this disclosure on March 2 in response to a Financial Times article about his investments.

“I sold all my cryptocurrency (including BTC, ETH, and SOL) prior to the start of the administration,” Sacks wrote on X. This sale happened before President Donald Trump’s inauguration in January 2025.

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

Sacks later added that he had a “$74k position in the Bitwise ETF” which he sold on January 22. He promised to “provide an update at the end of the ethics process” that he is currently going through.

This community note is a lie. I had a $74k position in the Bitwise ETF which I sold on January 22. I do not have “large indirect holdings.” I’ll provide an update at the end of the ethics process. pic.twitter.com/gwuVjL2HA5

— David Sacks (@DavidSacks) March 3, 2025

The Financial Times reported that Sacks’ investment firm, Craft Ventures, also sold its direct cryptocurrency holdings shortly after Trump took office. The venture capital firm still maintains stakes in several crypto-focused startups.

Craft Ventures was founded by Sacks in 2017 and has launched four funds since then. Its most recent fund closed in November after raising $712 million from investors.

According to its website, Craft Ventures has investments in several crypto companies. These include Bitwise Asset Management and crypto custodian BitGo, as well as social media platforms Meta, Reddit, and X.

Sacks also invested in Solana-focused venture firm Multicoin Capital back in 2018. He brings extensive industry experience to his government role, with personal crypto investments dating back to 2012.

Conflict of Interest?

Some industry observers have raised questions about potential conflicts of interest. Adam Cochran, managing partner at Cinneamhain Ventures, asked if Sacks’ divestment included his “LP position among crypto funds, angel investments in crypto related equity, exposure to Bitwise, or exposure to crypto via carry” in his previous firm.

I respect that, but for clarity sake, I assume that doesn’t include you LP position in crypto funds, angel investments in crypto related equity, exposure to Bitwise, or exposure to crypto via carry in your prior firm, right?

— Adam Cochran (adamscochran.eth) (@adamscochran) March 3, 2025

Sacks refuted claims in a Community Note that he had “large indirect holdings” due to Craft Ventures’ investments in crypto asset management firm Bitwise. He called this assertion “a lie.”

The divestment appears to address concerns about potential conflicts between Sacks’ personal investments and his new role in shaping federal crypto policy. Appointed in December 2024, Sacks now chairs the President’s Digital Asset Working Group.

In this capacity, he has been working to establish regulatory frameworks for the cryptocurrency industry. Industry stakeholders have generally welcomed his appointment, viewing his technological background as valuable for developing informed regulations.

The Trump administration has emphasized creating clear regulatory standards. These aim to encourage domestic innovation while providing appropriate oversight of the sector.

Under Sacks’ leadership, the White House has announced several initiatives in recent months. These include potential stablecoin legislation and coordination between Senate and House committees to develop coherent crypto policy.

Crypto Reserve

Sacks has been a strong supporter of President Trump’s crypto policies. In a recent post, he stated that Trump “is keeping his promise to make the US the crypto capital of the world,” following the announcement of a strategic crypto reserve on March 2.

This announcement caused cryptocurrency markets to rise by about 12%. Bitcoin jumped nearly 11% to $94,130, while Ethereum also saw major gains.

President Trump’s son, Eric Trump, commented on the timing of the announcement. He said he loved “the genius” of announcing a strategic reserve on a Sunday when traditional markets are closed. “For the first time, retail investors win,” he wrote.

Others in the crypto industry shared this view. Anthony Pompliano, founder and CEO of Professional Capital Management, called it “objectively hilarious” that Trump announced the crypto strategic reserve when Wall Street couldn’t participate “because they have antiquated hours of operations.”

The White House Crypto Summit scheduled for March 7 will bring together industry leaders and executives. They will discuss regulations, stablecoins, and the proposed US crypto reserve. Sacks will lead this inaugural event, where President Trump is expected to deliver remarks to “prominent founders, CEOs, and investors from the crypto industry.”