Trump’s Crypto Czar David Sacks Offloads Over $200 Million in Digital Asset Investments

David Sacks, President Donald Trump’s special adviser on artificial intelligence (AI) and cryptocurrencies, has divested more than $200 million in digital asset-related holdings, according to a memo released by the White House. The move comes as part of an effort to eliminate potential conflicts of interest while shaping the administration’s digital asset policies.

Massive Crypto Sell-Off: Bitcoin, Ethereum, Solana Liquidated

The March 5 memo from White House counsel David Warrington revealed that both Sacks and his venture capital firm, Craft Ventures, liquidated their cryptocurrency holdings ahead of Trump’s inauguration.

Divestments Include:

• Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) were sold off completely.
• Equity stakes in Coinbase Global Inc. and Robinhood Markets Inc. were fully divested.
• Limited-partner interests in crypto investment firms Multicoin Capital and Blockchain Capital were also sold.
• Craft Ventures separately liquidated its stakes in Multicoin Capital and Bitwise Asset Management Inc.

Of the total $200 million divested, at least $85 million was directly attributed to Sacks. The memo noted that these sales incurred significant tax costs, as special government employees like Sacks are not eligible for capital gains tax deferments.

Waiver from Conflict-of-Interest Regulations

Sacks’ full disclosure of divestments was a key requirement for obtaining a waiver from conflict-of-interest regulations, allowing him to serve as Trump’s special adviser on AI and crypto. In this role, he will play a pivotal part in shaping the administration’s digital-asset policies.

Additionally, Sacks has been named Chair of the President’s Working Group on Digital Asset Markets, reinforcing his influence over crypto regulations and AI policy.

This move places Sacks among a group of ultra-wealthy figures who have secured top positions in the Trump administration. Reports indicate that the combined net worth of 12 of Trump’s wealthiest appointees exceeds $400 billion.

Trump’s Pro-Crypto Shift: Policy Moves Favor Digital Assets

President Trump, who was once critical of cryptocurrencies, has dramatically shifted his stance since his re-election campaign. Within the first two months of his second term, he has taken significant steps to support the digital asset industry.

Major Crypto-Friendly Policies Under Trump:

1. White House Summit with Crypto Executives – Around two dozen industry leaders were invited for discussions on regulatory clarity and innovation.
2. Strategic Bitcoin Reserve – Trump signed an executive order to establish a national reserve of Bitcoin, signaling long-term government support.
3. Dismissal of SEC Lawsuits – The Securities and Exchange Commission (SEC) has dropped a dozen legal actions against crypto firms since former Chair Gary Gensler resigned.
4. Easing of Crypto Regulations – The administration is reviewing existing restrictions on blockchain and digital asset companies, aiming to create a more favorable regulatory environment.

This pro-crypto shift aligns with Trump’s broader agenda of deregulation and economic expansion, particularly in emerging technology sectors.

Additional Divestments: Venture Capital Funds and Equity Stakes

Beyond his crypto-related holdings, Sacks has initiated the sale of his stakes in multiple high-profile venture capital (VC) funds and companies:

• Sequoia Capital Funds and 90 other venture capital funds are being offloaded.
• Stakes in Animoca Brands Co., Open Deal Inc., and Amalgamated Token Services Inc. are in the process of being divested.
• Sacks still retains indirect financial interests in several VC funds managed by Craft Ventures, which hold private equity in digital-asset startups. However, the memo noted that these investments are highly illiquid and difficult to sell immediately.

These strategic moves suggest that Sacks is aligning his portfolio with his new role, reducing potential conflicts while still maintaining indirect exposure to the growing digital-asset industry.

What This Means for the Crypto Market

Sacks’ massive divestment and Trump’s evolving stance on crypto could have significant implications for the broader cryptocurrency market:

• Institutional Confidence: The administration’s pro-crypto policies may encourage institutional investment in digital assets.
• Regulatory Clarity: A friendlier SEC could pave the way for crypto-friendly regulations, reducing uncertainty for businesses and investors.
• Market Stability: While Sacks’ liquidation may have created short-term volatility, the overall trend suggests long-term bullish sentiment for cryptocurrencies under Trump’s leadership.

As the Trump administration continues to reshape US digital asset policy, industry players and investors will be closely watching for further regulatory moves and market reactions.