KEY POINTS
- Trump said he expects Sacks to 'guide policy' for crypto and AI
- He also expects the PayPal Mafia member to steer the country away from 'big tech bias and censorship'
- Several key figures in crypto congratulated Sacks, but some weren't too happy about the news
- Crypto markets didn't seem affected by the appointment, unlike how
Donald Trump has finally confirmed earlier reports that his transition team was considering a "White House AI & Crypto Czar." The incoming U.S. President also announced that he has chosen David Sacks for the role.
In his late Thursday announcement, Trump said Sacks will "guide policy" for AI and cryptocurrency, which the elected President believes are "two areas critical to the future of American competitiveness."
What the Crucial Role Demands
According to Trump, Sacks is expected to fulfill the following:
- Safeguard free speech – Trump made it clear during his keynote speech at the Bitcoin Conference that supports the American people's freedom of speech
- Stop big tech "bias and censorship" – The crypto industry will most likely hold Sacks accountable to this specific expectation that Trump wants to see from the White House's first crypto czar
- Push for a crypto legal framework – Many crypto firms have been demanding regulations specific for the crypto industry and Sacks is expected to deliver
Aside from being installed as the country's first crypto-focused czar, Sacks has also been appointed to lead the Presidential Council of Advisors for Science and Technology. Sacks has since taken to X to express his gratitude for Trump's trust.
https://t.co/DllC6aJYoG pic.twitter.com/Li86cNDuP8
— David Sacks (@DavidSacks) December 6, 2024
Who is Sacks?
Sacks was PayPal's former COO, during the payments giant's founding years. Trump noted that Sacks was "part of the legendary 'PayPal Mafia,'" a group of ex-PayPal employees who moved on from the company to either develop new technology or found new tech-centric companies. Elon Musk is also part of the said group.
While Sacks went on to found tech firm Yammer after leaving PayPal, he became more recently known for being a host of the All-In podcast with other investors and venture capitalists.
Notably, Sacks was very critical of Trump in the aftermath of the Jan. 6, 2021 Capitol riot that left five people dead. At the time, Sacks said that because of Trump's role in the riot, he had "disqualified himself from being a candidate at a national level."
The pivot was apparent in the lead-up to the elections as Sacks was one of the key tech leaders who helped boost the Republican's campaign. He hosted a fundraiser where top-tier tickets sold for a whopping $300,000 each for perks that included a photo with Trump.
Sacks's appointment is widely recognized as the incoming President's way of "rewarding" tech leaders for their huge support that undeniably helped in what could be the most spectacular political comeback in U.S. history.
How Does Crypto Feel About the News?
While it's somehow difficult to gauge entire crypto community's sentiments over Sacks's appointment, some key figures in the space appear very cordial about it.
Ripple CEO Brad Garlinghouse said Sacks understood tech "inside and out" and will ultimately advance the Trump government's plans for AI, crypto and other pro-innovation initiatives.
Huge congrats to @DavidSacks on this appointment – he understands tech inside and out, and importantly, will push forward President Trump’s crypto and AI pro-innovation plans.
— Brad Garlinghouse (@bgarlinghouse) December 6, 2024
Dream team! https://t.co/FFMSCIiscl
Tyler Winklevoss of the Gemini exchange believes Trump made an excellent pick in Sacks, saying the latter was "super early in crypto."
David Bailey of the Bitcoin Magazine said Sacks "was by far the best candidate for the job." When asked if he had input in the decision, Bailey said he did contribute to the discussions, adding that the Trump transition team "is very collaborative."
The crypto czar choice was a lot trickier than I initially expected due to special interest and professional histories. @DavidSacks was by far the best candidate for the job and will do an incredible job for America. 10/10 pick by the President. Congratulations
— David Bailey🇵🇷 $0.85mm/btc is the floor (@DavidFBailey) December 6, 2024
Send us to the 🌖
Bailey's response confirms earlier reports that the Trump team was discussing the new role with crypto and tech figures to assess the necessity of such a position.
Not everyone in crypto is happy about it, though. Prominent fintech analyst and investor Adam Cochran pointed out that Sacks "ran the sh***y VC firm." It is unclear which specific venture capital firm Cochran was referring to, but Sacks is a co-founder of VC fund Craft Ventures.
Lyle Pratt, the CEO of enterprise-grade AI voice solutions provider, said Craft Ventures was a huge supporter of the Lightning Network, a payment protocol built on the Bitcoin blockchain.
Craft Ventures, @DavidSacks’ venture fund, has been a big supporter of the Lightning Network with investments in ecosystem pillars like @lightning and @voltage_cloud. Looking forward to watching him execute in the new Bitcoin and AI Czar roll.
— Lyle Pratt (@lylepratt) December 6, 2024
One user said he has "barely" paid attention to Sacks, but thanked Pratt for the information regarding his founded VC firm's supposed role in driving the Lightning Network forward.
How the Crypto Market Reacted
For some in the crypto space, Sacks's appointment may have come as a surprise, considering former chair of the Commodity Futures Trading Commission (CFTC) Chris Giancarlo was supposedly a "serious" contender for the position.
Meanwhile, crypto markets didn't appear to react positively nor negatively to the news. Bitcoin plunged dramatically before settling at around $97,000 ahead of the announcement. Hours after the news spread on social media, BTC prices have barely moved. The digital currency is trading in the $98,000 lows as of press time.
To compare, BTC surged to $100,000 for the first time after Trump nominated ex-Commissioner Paul Atkins to replace Securities and Exchange Commission (SEC) Chair Gensler.
