David Sacks, recently appointed as the White House AI and Crypto Czar, has faced allegations of potential conflicts of interest following President Donald Trump's announcement of a U.S. Crypto Reserve. Critics have questioned whether Sacks influenced the selection of specific cryptocurrencies—Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA)—for the reserve, given his prior investments in the crypto sector.
In response, Sacks has publicly stated that he divested all his personal cryptocurrency holdings, including BTC, ETH, and SOL, before the current administration began. Addressing concerns about indirect holdings through investment vehicles like the Bitwise ETF, Sacks clarified that he had a $74,000 position in the Bitwise ETF, which he sold on January 22, 2025, asserting that he does not have "large indirect holdings."
Despite these divestments, some scrutiny persists due to Sacks' venture firm, Craft Ventures, maintaining stakes in crypto-related startups, including Bitwise Asset Management. Bitwise offers cryptocurrency index funds that hold assets such as BTC, ETH, SOL, XRP, and ADA—the same cryptocurrencies included in the U.S. Crypto Reserve.
Sacks has committed to providing further updates upon the completion of the ethics review process to address any remaining concerns about potential conflicts of interest.
