Back when current U.S. president Donald Trump was still on the campaign trail for his 2024 presidential campaign, he enthusiastically declared strong support for the cryptocurrency sector. Now that he is the sitting president, Trump has indeed already taken several actions to offer regulatory clarity to Web3. One of the most notable actions is the appointment of David Sacks to a federal government position that’s dedicated to cryptocurrency and AI technologies. As a Silicon Valley veteran with experience founding payment companies and investing in a variety of tech startups as a venture capitalist, David Sacks can play a pivotal role in the general direction of crypto markets for the next few years.
Subsequent ventures of the PayPal Mafia
David Sacks - A Silicon Valley Stalwart
David Sacks is a 52-year old South African entrepreneur and venture capitalist who began his tech career in 1999 as part of PayPal. He ultimately climbed to become PayPal’s Chief Operating Officer and is widely regarded as a member of the influential “PayPal Mafia”—a network of former PayPal leaders like Peter Thiel, Elon Musk, and Reid Hoffman who went on to found other legendary technology startups.
After eBay acquired PayPal for $1.5 billion in 2002, Sacks transitioned into a serial entrepreneur and investor. He founded several notable ventures, including Geni, a genealogy platform, and Yammer, a business communication tool later acquired by Microsoft. He also served as CEO of Zenefits, a human resources software company. In 2017, Sacks co-founded Craft Ventures, a venture capital firm that has backed high-profile companies like BitGo (the issuer of wrapped Bitcoin), Meta, Airbnb, and SpaceX. Additionally, he gained early exposure to Solana through an investment in Multicoin Capital, further solidifying his influence in both traditional tech and emerging crypto ecosystems. In recent years, Sacks has been an integral part of the tech-focused All-in Podcast, in which he has shared insights on current business events as well as generally right-wing, libertarian leaning political views.
David Sacks (top right) as a member of the All-In Podcast
Views on Cryptocurrency
Sacks’ new leadership role includes responsibility for crypto policy, a move that has been welcomed by crypto investors. Known for his support of the industry, Sacks is expected to align with Trump’s vision of light-touch regulation, fostering a more favorable environment for digital assets. Sacks has substantial financial ties to Solana, a blockchain-based cryptocurrency once promoted by Sam Bankman-Fried, and his venture capital firm Craft Ventures has invested in crypto firms like BitGo and Bitwise.
In announcing Sacks’ appointment, Trump emphasized that Sacks would help develop “a legal framework to provide the clarity the crypto industry has sought, enabling it to flourish in the U.S.” Sacks joins a growing list of pro-crypto figures in Trump’s administration, including SEC chair nominee Paul Atkins. This stands in stark contrast to the Biden-era SEC, which took an aggressive stance by pursuing legal action against crypto companies it accused of violating securities laws. Sacks’ involvement signals a potential shift toward a more accommodating regulatory approach, offering hope to an industry eager for stability and growth.
Views on Artificial Intelligence
Sacks has been a vocal proponent of integrating AI into warfare and national security systems. In an April episode of All-In, he expressed his desire for Silicon Valley companies to take a more active role in U.S. defense initiatives. He is actively involved in the AI space, having launched an AI-driven workplace chat application called Glue. He has consistently advocated for an open ecosystem that fosters AI company growth and believes that most online content should be accessible for AI training under fair use principles. Additionally, Sacks has been a strong critic of AI censorship which aligns with Elon Musk’s stance on AI. In his new position as the crypto and AI czar, Sacks will likely push for deregulation and encourage innovation for American AI development.
Actions Taken as Crypto Czar
On February 5, 2025 David Sacks held the U.S. government’s first-ever official press conference on digital assets. During his address, Sacks pledged to make Bitcoin and digital assets a key focus during the Trump administration. He highlighted the importance of retaining innovation within the U.S. to sustain its global leadership in financial technology. To support this objective, he announced the formation of a joint working group between the House and Senate focused on crypto legislation. This initiative aligns with the administration’s broader strategy to establish regulatory clarity and cultivate a thriving blockchain ecosystem in the country.
The conference emphasized the importance of stablecoins in solidifying the dominance of the U.S. dollar for global finance. As part of the broader initiative to establish regulatory clarity in this regard, lawmakers are advancing two key legislative efforts. The Market Structure Legislation is built on the Fit 21 bill, and aims to define digital assets clearly, designate regulatory oversight, and implement fair compliance standards. There is also stablecoin legislation that’s gaining traction with a new bill introduced by Senator Hagerty to lay groundwork for future stablecoin regulation. Finally, Sacks mentioned during the press conference that the U.S. government is still exploring the possibility of establishing a Bitcoin strategic reserve. If such an action is actually taken, it would propel the USA into the forefront of the digital asset economy and provide lasting legitimacy to Bitcoin and to a lesser extent crypto in general as an asset class.
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