David Sacks warns overregulation could push U.S. crypto innovation offshore, risking its global leadership in digital finance.
Sacks suggests the U.S. government could buy Bitcoin using reallocated funds without adding to national debt or raising taxes.
Hostile crypto policies may drive companies to friendlier nations, weakening America's influence in blockchain and fintech innovation.
David Sacks reignited a heated debate over U.S. crypto regulation during a Bitcoin 2025 conference on May 27. He criticized Senator Elizabeth Warren’s tough stance on the digital asset industry. Sacks, now the White House’s crypto and AI czar, accused her of harboring a “pathological hatred” for the community. According to him, Warren’s campaign to clamp down on crypto could drive innovation offshore. Consequently, Sacks warned that the U.S. risks losing its leadership in blockchain and digital finance.
Moreover, Sacks urged policymakers to embrace a balanced regulatory approach. He stressed the need for constructive dialogue instead of fear-driven opposition. Besides, he noted that many in tech and finance believe overregulation could hurt U.S. competitiveness.
Additionally, Sacks warned that crypto companies may flee to friendlier jurisdictions like Switzerland, the UAE, or Singapore. Such a shift could significantly reduce America’s role in shaping global crypto policy.
A Strategic Case for Bitcoin Acquisition
During the fireside chat with Gemini founders Tyler and Cameron Winklevoss, Sacks discussed potential government strategies for Bitcoin acquisition. He stated that buying more Bitcoin is possible — but only under strict financial conditions.
Hence, the acquisition would require a budget-neutral solution. This means no new taxes or increases in national debt. Sacks proposed reallocating underused federal funds from other programs to fund the purchase.
However, the final decision lies with Commerce Secretary Howard Lutnick or Treasury Secretary Scott Besson. They must approve and find the required funding source. Sacks emphasized that the White House already has presidential authorization for such action, pending departmental support.
Regulatory Uncertainty Puts U.S. Position at Risk
The crypto community continues to rally against harsh rhetoric from lawmakers like Warren. Many believe it stifles innovation and discourages investment. Moreover, regulatory hostility risks pushing blockchain pioneers away from the U.S.
Additionally, the lack of clear and consistent rules creates uncertainty. This situation frustrates businesses and entrepreneurs trying to operate within legal boundaries. Consequently, critics argue that the U.S. may miss out on the next wave of financial innovation.
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