David Sacks Denies Conflict of Interest in Trump’s Crypto Reserve Plan

David Sacks, President Donald Trump’s crypto and AI czar, is under scrutiny over potential financial benefits from Trump’s proposed U.S. strategic crypto reserve. Announced on Sunday, the initiative would see the government hold reserves of Bitcoin (BTC), Ethereum (ETH), XRP, Cardano (ADA), and Solana (SOL). Critics argue that administration officials with crypto ties could profit from the move.

Sacks, a venture capitalist with past crypto investments, rejected these claims, stating he divested all personal crypto holdings, including his stake in Multicoin Capital, before joining the administration. However, concerns linger over Craft Ventures, Sacks’ VC firm, and its investment in Bitwise, a crypto index fund manager whose ETF includes all assets in Trump’s reserve plan.

A source close to Craft Ventures confirmed the firm exited its Bitwise position before the start of Trump’s second term, with its website updated to reflect this as of January 2025. Neither Craft Ventures, Bitwise, nor Sacks have publicly commented, citing Sacks' ongoing government clearance process.

Sacks dismissed the controversy on X (formerly Twitter), calling claims of financial gain a “lazy and stupid narrative.” He emphasized that serving in government requires major business divestments.

Trump’s proposed crypto reserve continues to divide the community. Some advocates favor a Bitcoin-only reserve, while others question government involvement in digital assets, arguing it contradicts crypto’s decentralized principles. Meanwhile, concerns grow over Trump’s ties to World Liberty Financial, a crypto startup with a $500 million treasury, including assets listed in the reserve plan.

The debate over conflicts of interest and government intervention in crypto is far from over.