David Sacks, the White House’s point person on cryptocurrency, has taken to social media to directly address recent media reports about his decision to liquidate his cryptocurrency holdings before joining the Trump administration. Sacks expressed his strong disapproval of how his divestment was portrayed, particularly objecting to the use of the word “dump.”
Sacks used social media platform X to convey his frustration with the media’s description of his asset liquidation. In his statement, he made it clear that he did not “dump” his cryptocurrency. Instead, he emphasized that he “divested” his holdings to comply with mandatory government ethics regulations.
Sacks clarified that while he would have preferred to keep his digital assets, the move was a necessary step to meet ethics requirements. He stated that serving in the Trump administration was an honor and that his decision to liquidate his crypto was a result of required compliance, not a personal choice to exit the market.
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The Divestment Timeline
Earlier this month, Sacks confirmed that he had sold off his entire cryptocurrency portfolio before assuming his role as the White House crypto czar. His holdings included well-known digital assets like Bitcoin, Ethereum, and Solana.
He executed the majority of these sales shortly after Donald Trump’s inauguration on January 20, 2021. Specifically, his divestment from the Bitwise 10 Crypto Index Fund occurred on January 22, 2021. This action ensured that he had no direct personal investment in cryptocurrencies when he officially took office.
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It’s worth noting that Sacks’s venture capital firm, Crypto Ventures, continues to hold investments in various crypto startups. This distinction shows how Sacks’s personal divestment was specifically mandated by his government position, not an indication of a lack of faith in the cryptocurrency sector.
Ethics Rules and Crypto
Government ethics regulations are in place to prevent conflicts of interest for public officials. Holding significant investments in sectors they oversee can create such conflicts.
Given Sacks’s role in shaping the White House’s policy on digital assets and artificial intelligence, divesting his personal cryptocurrency holdings was a mandatory step to ensure impartiality.
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