- David Sacks has sold off all his direct crypto holdings amidst concerns of conflict of interest.
- Trump’s announcement of a U.S. strategic crypto reserve has caused a surge in the market.
David Sacks, who has recently been appointed as Trump’s AI & Crypto Czar, made a significant move before officially taking on his responsibilities.
David Sacks confirms selling off his crypto holdings
On March 3rd, he confirmed that he has sold all his direct crypto holdings, a decision likely made to avoid any potential conflicts of interest.
His appointment signaled a shift in the administration’s approach to digital assets and artificial intelligence, but his choice to divest has raised some questions.
Sharing a screenshot from a Financial Times report, Sacks mentioned,
“Correct. I sold all my cryptocurrency (including BTC, ETH, and SOL) prior to the start of the administration.”
Despite Sacks’ decision to sell off his direct crypto holdings, concerns about potential conflicts of interest persist.
What are the critics saying?
Critics have highlighted his connections with Bitwise, a company that offers exchange-traded funds (ETFs) for investments in Bitcoin [BTC], Ethereum [ETH], Ripple [XRP], Solana [SOL], and Cardano [ADA].
As the founder of Craft Ventures, which has stakes in various crypto startups including Bitwise, questions about his financial ties remain.
In response to speculation on social media, Sacks denied having indirect crypto holdings through Bitwise.
Sacks stated,
“This community note is false. I had a $74k position in the Bitwise ETF which I sold on January 22. I do not have ‘large indirect holdings.’ I will provide an update at the end of the ethics process.”
Meanwhile, reports suggest that he is undergoing an official ethics review, with more disclosures regarding his financial interests expected soon.
Trump’s ambitious crypto vision
Sacks’ disclosure came at a crucial time, coinciding with Donald Trump’s announcement of a U.S. strategic crypto reserve—an unprecedented move that solidifies digital assets in national financial policy.
The reserve, which will include Bitcoin, Ether, and other cryptocurrencies, signifies a high level of government support for the sector.
Trump confirmed that Bitcoin and Ether will form the foundation of the reserve, reinforcing their dominant position in the market.
This news triggered a surge across the market, with Bitcoin rising by 8% to $93,007 and Ether climbing by 9.7% to $2,438. XRP saw an even more significant increase, jumping by 24.5% to $2.80, as investor confidence surged.
Furthermore, the bullish momentum boosted the global crypto market cap to $3.02 trillion, marking a 6.27% gain in just 24 hours.
Therefore, as the implications of this policy shift unfold, the market is preparing for further volatility and regulatory clarity under Trump’s leadership.