The dual role of the crypto official under Trump has sparked controversy over potential conflicts of interest and impact on the direction of digital asset policy.
President Donald J. Trump’s appointment of entrepreneur and investor David Sacks as an advisor on crypto and artificial intelligence (AI) has immediately attracted strong attention from the technology community, policymakers, and financial markets. Not only because Sacks is a prominent figure in Silicon Valley, but also because he holds financial interests in a series of companies operating in the field where he is assigned to develop policies.
An influential advisor and a huge portfolio
David Sacks is XEM an innovative thinker, crypto advocate, and a champion of rapid AI development. However, according to related reports, he still holds interests in dozens of crypto companies and hundreds of AI companies , including large private investments.
Notably, Sacks once held a 7.8% stake in BitGo , one of the major crypto infrastructure platforms, leading many experts to believe that any policy he promoted could directly impact his own net worth.
While he has divested some of his liquidation crypto assets, “illiquid” investments like startup shares remain intact, and this is where the controversy lies.
Legal regulations are more lax because of the special location
Sacks is classified as a “special government employee,” meaning he only works part-time for the government. Therefore:
No Senate approval required
Not subject to the same rigorous standards as full-time employees
There is a “gloomy” space in the disclosure or Capital
This has many lawmakers concerned that this special Vai opens up the possibility of conflicts of interest without clear oversight mechanisms.
Concerns from lawmakers and the financial community
Critics argue that a situation where a person has both direct influence on the development of the legal framework and also holds personal financial interests is an unavoidable conflict of interest.
Concerns include:
Crypto/AI policy could benefit companies Sacks owns stakes in
Lack of transparency in Capital
Risk of undermining public confidence in the legal process
Some lawmakers have called for increased oversight, even suggesting that Sacks Capital completely from crypto/AI-related investments if he continues to Vai as a policymaker.
Impact on the crypto/AI market
This incident shows the fine line between technological innovation and political lobbying:
New regulations could have a major impact on crypto asset values
Sacks' position can be a boost or a risk depending on the level of transparency.
Small startups could suffer if policies are designed to favor large companies.
Furthermore, this debate reflects a global question: how to combine cutting-edge technology with transparent, fair governance?
Perspective from the crypto community
For investors and crypto enthusiasts, David Sacks' story is a reminder that:
Regulations always have a strong influence on the market.
Transparency and accountability must come first.
Community trust is the foundation for sustainable crypto and Web3 development
While Sacks may bring pro-tech policies, independent oversight is still needed to ensure every decision is made in the public interest.
Follow CoinMoi to update the hottest issues of the crypto market okay!!!
The article Dual Vai of Crypto Policy Head Under Trump Sparks Conflict of Interest Debate appeared first on CoinMoi .
