Trump’s Crypto Czar Sold Holdings Before Appointment

It is no secret that there are so many ways to make money from cryptocurrency. The most common way is perhaps speculative trading of different assets, given that so many crypto tokens have proven to be successful over the years. There’s also the option of gambling with cryptocurrency, which has become very popular in the last few years. The myriad of casinos that now accept cryptocurrency to play their games are only growing more popular over time (source: cryptocasino.guru). But as people gamble with and invest in cryptocurrency, there are growing implications for the public sector.

Case in point, David Sacks, the Trump administration’s crypto and AI czar, has come out to reveal that he sold over $200 million of his crypto investment before the current president took office. According to a White House ethics memo, these holdings were both his personal assets and those owned by his company, Craft Ventures.  About $85 million of this is attributable to him directly, and these included shares in companies such as  Coinbase and Robinhood, as well as tokens like Bitcoin, Ether, and Solana. The motivation for selling these assets has to do with conflict of interest. Considering he’s taking a role in the government, especially one that directly deals with the crypto industry, it was considered inappropriate for him to have direct exposure to cryptocurrency.

He’s been criticized by other officials such as Senator Elizabeth Warren regarding possible interest in the crypto space. It is also worth noting that Sacks and Trump recently held the first ever White House crypto summit, which is considered a major milestone for the industry in terms of acceptance.

Notably, his boss, Trump, also came under fire recently for his dealings with cryptocurrency. Both Trump and his wife Melania launched meme coins featuring their name and image, and while these tokens initially performed well in the market, their value eventually tanked. Critics claimed that this was a way for the first couple to exploit their supporters for money and reignited a conversation about how public officials should be allowed to deal in cryptocurrency, if at all. There is now a bill being pushed that would ban public officeholders from releasing meme tokens. 

A decade ago, this would not have been such a topic of discussion because cryptocurrency was not this prominent. But given the fact that tokens are Bitcoin are worth tens of thousands of dollars, spot ETFs for cryptocurrencies are a reality, and there is more institutional and individual acceptance of them than ever before, the stakes are much higher.

Just like with the stocks of major companies, there is now an implication when those who make laws and can influence the treatment of the industry also have direct benefits from it. As the Trump administration continues its run as the most pro-crypto one so far, the complexities of public figures’ engagement with the asset class will only become more of a hot topic. Hopefully, all this discussion will lead to tangible change and better treatment of cryptos overall. 

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