Crypto News

Trump Administration’s Crypto Czar David Sacks Divests Over $200 Million in Digital Assets Amid Conflict of Interest Scrutiny

March 17, 2025
Smart Money

President Trump, Crypto Czar David Sacks Discuss Digital Assets at White House Summit

Washington, D.C. – March 7, 2025 – U.S. President Donald Trump convened a Crypto Summit at the White House yesterday, where he was notably accompanied by David Sacks, the administration’s designated AI and cryptocurrency czar. The meeting symbolizes a significant governmental focus on the burgeoning digital asset sector amid notable changes within the administration.

Sacks’ Divestments Prior to Appointment

A recently released memo from White House Counsel David Warrington reveals that Sacks divested over $200 million worth of digital asset-related investments before formally assuming his role. The document, which encompasses 11 pages, outlines that at least $85 million of those transactions "is directly attributable to Sacks." Furthermore, while Sacks has liquidated many of his holdings, Craft Ventures—his venture capital firm—remains an investor in several funds that contain digital assets.

In stark contrast to his predecessors, Sacks’ actions appear to reflect a cautious approach to potential conflicts of interest, a noted deviation from the previous Trump administration’s handling of ethics concerns. This memo stands in contrast to a much shorter two-page disclosure from new Health and Human Services Secretary Robert F. Kennedy Jr.

President Trump’s Crypto Interests

President Trump is known for his extensive real estate portfolio and major stake in Trump Media & Technology Group, the publicly traded parent company of the social media platform Truth Social. Notably, Trump has launched various crypto initiatives that may fluctuate based on government regulations. Furthermore, Tesla CEO Elon Musk, a key adviser to Trump, has emerged as a significant influencer regarding policies that could impact his multiple ventures, including Tesla and SpaceX.

Shortly before his inauguration, Trump debuted a memetoken named $TRUMP through CIC Digital LLC, which owns 80% of its total supply. The First Family is also poised to benefit financially from World Liberty Financial, a crypto bank launched last year, which allocates 75% of its proceeds to the Trump family.

Regulatory Implications and Industry Investments

Musk serves as the head of the newly established Department of Government Efficiency (DOGE), which could shape regulations that benefit his enterprises. Specifically, SpaceX is currently under contract with the National Reconnaissance Office for a $1.8 billion deal to develop a spy satellite network.

Reports have surfaced indicating that several cabinet members, including Commerce Secretary Howard Lutnick, possess substantial investments in various cryptocurrencies, notably generating significant earnings through their ties to cryptocurrency exchange Tether.

Requests for comments from representatives of Musk, the White House, and the Commerce Department went unanswered as of press time.

Sacks Responds to Conflict Concerns

In a recent episode of the popular All-In podcast, Sacks stated he had sold around $200 million in cryptocurrency assets to avoid even the appearance of a conflict of interest. His remarks followed concerns raised by public officials, including Senator Elizabeth Warren, who had urged Sacks to disclose his digital asset holdings prior to the Crypto Summit.

On March 6, President Trump signed an executive order establishing a Strategic Bitcoin Reserve. This reserve is designed to exclusively include bitcoin, funded by tokens obtained through criminal and civil asset seizures, ensuring there would be no cost to taxpayers. The order also initiated the creation of a U.S. Digital Asset Stockpile managed by the Treasury Department for holding other confiscated cryptocurrencies.

According to Sacks’ ethics disclosure, he has fully liquidated his direct holdings in key cryptocurrencies such as bitcoin, ether, and solana, in addition to his positions in the Bitwise 10 Crypto Index Fund and shares of Coinbase and Robinhood. Sacks is also in the process of reducing his stake in several private digital asset companies, although a few holdings remain, now constituting less than 0.1% of his total investment portfolio.

As the administration moves forward in shaping policies around digital assets, the conversations at the Crypto Summit represent a crucial intersection of government, technology, and finance—a dynamic that will likely evolve rapidly in the coming months.