Sacks Sells $200M in Crypto Before White House Role
David Sacks, recently appointed White House AI and crypto czar, divested over $200 million in crypto and crypto-related stocks before commencing his role, according to a White House memorandum. The memo, dated March 5, specifically stated that Sacks and his firm, Craft Ventures, sold assets valued at over $200 million, with $85 million directly attributable to Sacks himself.
Preventing Conflicts of Interest
This significant divestment was undertaken to mitigate potential conflicts of interest. Sacks' role involves creating a legal framework for the crypto industry; therefore, prior asset holdings could present ethical concerns. The sale included all "liquid cryptocurrency" in both Sacks' and Craft Ventures' portfolios. This encompassed holdings in major cryptocurrencies such as Bitcoin (BTC), Ether (ETH), and Solana (SOL), and was completed before President Trump's inauguration on January 20.
Beyond cryptocurrencies, Sacks also divested from publicly traded crypto-related firms, including Coinbase (COIN) and Robinhood (HOOD), along with stakes in several private digital asset companies. Further actions included selling his limited partner interest in Solana-focused Multichain Capital and Blockchain Capital, while Craft Ventures offloaded holdings in Multichain Capital and Bitwise Asset Management.
Source: The White House
Market Downturn and Senator Warren's Inquiry
The crypto market has experienced a significant decline since President Trump's inauguration, with Bitcoin falling below $80,000 on February 27 after reaching a high of $109,000 just before the inauguration. These market shifts followed Trump's proposed tariffs and uncertainty about US interest rates. Senator Elizabeth Warren, in a letter dated March 6, requested verification from Sacks that he had completely divested from digital assets, following his public statements on the matter.
Despite the divestment, Sacks has since become a vocal advocate on various crypto issues, including the importance of a Strategic Bitcoin Reserve and the need for responsible taxation of the crypto industry. He recently voiced opposition to proposed crypto transaction taxes, stating on the All In Podcast that such taxes, even if initially modest, could expand to negatively impact a larger segment of the population.
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