White House-appointed ‘Crypto Czar’ David Sacks has responded to speculation surrounding his recent divestment from Bitcoin, Ethereum, and Solana, insisting that it was a requirement under government ethics rules rather than a voluntary move.
Sacks, a longtime crypto investor and a vocal advocate for digital assets, took to X (formerly Twitter) to push back against media reports suggesting he “dumped” his holdings before taking office.
“Why does the media always want to portray cryptocurrency in the worst light? I did not ‘dump’ my cryptocurrency; I divested it,” Sacks posted on March 19. “Obviously, I would have preferred not to, but government ethics rules required it.”
Why Did Sacks Sell His Crypto Holdings?
Under U.S. Office of Government Ethics rules, officials involved in shaping cryptocurrency policy must divest their personal digital asset holdings to avoid conflicts of interest.
Earlier this month, Sacks confirmed that he had liquidated all his crypto investments, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), before formally joining the Trump administration.
However, his investment firm, Crypto Ventures, still holds stakes in several crypto startups, though Sacks himself no longer has direct exposure to digital assets.
The Bigger Picture: Trump’s Crypto Policies and Industry Impact
Sacks’ appointment as Crypto Czar in December 2024 signaled a major shift in the regulatory landscape, with the Trump administration expected to take a more business-friendly stance on crypto compared to previous leadership.
Sacks has been a key figure in Trump’s financial circle, hosting a $12 million fundraiser for the former president alongside venture capitalist Chamath Palihapitiya.
His move to distance himself from direct crypto holdings raises several questions:
- Will Trump’s administration push for deregulation in crypto markets?
- How will Sacks’ policy decisions influence Bitcoin, Ethereum, and Solana?
- Will institutional investors gain confidence in digital assets under new leadership?
As crypto regulations continue evolving under the Trump administration, all eyes will be on how Sacks navigates his role while balancing government policies with industry interests.