Donald Trump has selected David Sacks, a prominent figure in the tech and cryptocurrency world, to advise his administration on artificial intelligence (AI) and cryptocurrency policy. This appointment signals a significant shift in the potential direction of US regulation in these rapidly evolving sectors.
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Sacks to Lead Presidential Council, Focus on American Competitiveness
Trump announced Sacks’ appointment via Truth Social, designating him as the “White House A.I. & Crypto Czar” and head of the Presidential Council of Advisors for Science and Technology. The former PayPal COO will be tasked with guiding policy to ensure America maintains a leading global position in AI and cryptocurrency. Trump emphasized Sacks’ role in safeguarding free speech online and mitigating bias and censorship from Big Tech companies.
This appointment bypasses the traditional Senate confirmation process required for cabinet positions, as it falls under the purview of presidential advisory councils. Notably, Sacks lacks prior government experience. Trump’s decision highlights Sacks’ business acumen, referencing his successful tenures at PayPal and Yammer, the latter being acquired by Microsoft for $1.2 billion.
Sacks is also known for his close ties to Elon Musk, having provided financial backing for Musk’s $44 billion acquisition of Twitter in 2022. While generally advocating for reduced government intervention and deregulation, Sacks notably urged the Biden administration to intervene during the 2023 Silicon Valley Bank crisis. He publicly called for immediate action to protect depositors and prevent contagion, demonstrating a pragmatic approach to crisis management.
Potential for Significant Policy Shifts Under Sacks’ Influence
Alongside Paul Atkins, Trump’s nominee to lead the Securities and Exchange Commission, Sacks is poised to significantly influence US policy on cryptocurrency and AI. This represents a stark contrast to the Biden administration’s efforts to increase regulation of the crypto industry. Sacks, a vocal advocate for the industry and a significant investor in Solana and other crypto ventures like Multicoin Capital, is likely to champion a more favorable regulatory environment.
Trump’s Evolving Stance on Cryptocurrency
Trump’s embrace of Sacks and his pro-crypto stance marks a considerable shift from his previous skepticism towards digital currencies. In 2021, he characterized Bitcoin as a “scam” and advocated for stringent government oversight. However, following the 2024 election cycle, during which the crypto industry contributed significantly to pro-crypto candidates, Trump has pledged to establish the United States as the global crypto capital. This appointment underscores that commitment and suggests a significant departure from previous regulatory approaches. Sacks’ influence could pave the way for a more innovation-friendly environment for the cryptocurrency industry in the United States.
