Elizabeth Warren Accuses David Sacks

• Senator Elizabeth Warren is questioning Crypto Czar David Sacks on his conflict of interest with Bitwise.
• The White House official had earlier stated that he sold his stakes before taking on the Crypto Czar role.

US Senator Elizabeth Warren has issued a letter to White House Crypto Czar David Sacks, questioning him about a potential conflict of interest. In the letter, Warren accused Sacks of investing in Bitwise Investment’s funds, holding five top cryptocurrencies. 

Sacks Accused of Investing in Crypto

These include Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and Cardano (ADA). Notably, President Donald Trump recently spotlighted these assets for the establishment of a national crypto reserve. They are also among the top 10 assets ranked on MarketCap. 

Warren questioned Sacks’s investment in the five cryptocurrencies featured in Trump’s crypto reserve in her letter. She contends that the government’s support for the blockchain industry would drive up values for existing holders, raising conflict of interest questions for officials like Sacks.

Sacks is a special government employee under Trump’s second-term administration. As detailed in our recent news piece, Sacks is an early advocate for cryptocurrencies. In a 2017 interview, He said Bitcoin was transforming the internet. 

Trump emphasized that Sacks would work on developing a legal framework that would provide clarity for the crypto industry. However, the new role offers Sacks certain exemptions under ethics rules. For instance, he can maintain the confidentiality of his financial disclosure reports.

Meanwhile, on Sunday, Trump’s crypto reserve announcement sparked a $300 billion global crypto rally. BTC, ETH, SOL, XRP, and ADA posted outsized gains following the rally, which piqued Warren’s interest regarding Sacks’ alleged investment in Bitwise.

Tough Times for David Sacks

The Senator asks for the identities of anyone who helped Trump determine the five cryptocurrencies. In her letter, she also questioned how many were subject to conflict of interest laws. She also queried Sacks about any relevant trades made by anyone who had worked on the reserve policy before Trump’s announcement.

The Senator also requested that Sacks publicly disclose any reports he filed personally with the Office of Government Ethics. Furthermore, she wants the Crypto Czar to release evidence that he sold his holdings in the listed cryptocurrencies.

Warren and other critics argue that Sack stands to benefit from the nation’s crypto reserve since he holds investments in the five cryptocurrencies. Sacks said he divested from all of his crypto-related holdings before joining the administration. 

However, the debate about whether Sack’s venture capital firm, Craft Ventures, retained its investment in Bitwise continues to divide the community. Despite the ongoing concerns, Ripple CEO Brad Garlinghouse has pledged his support for Sacks’ regulatory initiatives.

As highlighted in our earlier post, Sacks outlined plans for comprehensive digital asset regulation. The Crypto Czar’s initiative aims to create a crypto-friendly legislative framework that supports blockchain innovation while keeping digital asset businesses within US jurisdiction.