US President-elect Donald Trump announced the appointment of David Sacks, former Chief Operating Officer of PayPal, as the “White House AI & Crypto Czar.” It is a step toward reorienting US policy surrounding digital assets and artificial intelligence.
Trump, in a post on Truth Social, said, “He will work on a legal framework so the crypto industry has the clarity it has been asking for and can thrive in the US,” though it is unclear if “czar” is an official position.
Strengthening the Crypto and AI Regulatory Framework
Sacks’ appointment is part of a bid to reorient US policy on digital currency, which is backed by an incoming administration that also promises to set up a crypto advisory council. Other important roles include the chairmanships of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), which are likely to play crucial roles in this regulatory rebirth.
The new administration’s tech allies are advocating for a minimal regulatory approach to artificial intelligence and cryptocurrencies like bitcoin, arguing that stringent rules could stifle innovation in these sectors.
Industry Reactions and Predictions
In a post on X, Elad Gil, an entrepreneur with investments in companies such as Airbnb and Coinbase, referred to Sacks’ appointment as a “strong move.” Sam Altman, the CEO of OpenAI, echoed the same sentiment by writing on the platform, “Congrats to czar @DavidSacks!”
Founder Kindred Ventures and a co-investor with Sacks on AI and crypto startups, Steve Jang predicted that Sacks would favor targeted regulation of critical applications of AI over broad restrictions on the development of AI models. It was exactly what drew attention in Silicon Valley during which time the investors revolted California’s failed SB 1047 bill aiming at the regulation of AI model development.
Increasing pro-crypto policies
On Wednesday, Trump announced he was nominating Paul Atkins, a well-known Washington lawyer and crypto proponent, to run the SEC. The appointment was hailed by the crypto industry and represents a flip-flop for Trump, who once referred to crypto as a scam but now seems to be embracing the sector. During his campaign, he vowed to make the US the “crypto capital of the planet” and even suggested stockpiling bitcoin.
The fact that Bitcoin jumped past $100,000 Wednesday was considered validation of the ever-growing interest in digital assets-even by skeptics. As CIO at Astronaut Capital, Matthew Dibb said, “David has had somewhat of a hands-on approach to crypto over the years, at times holding coins such as Solana. He appears to be a lot more technically and commercially competent regarding crypto than most would think.
David Sacks, 52, is a South African native and co-founder of Craft Ventures. He played a crucial role in PayPal, which was sold to eBay in 2002. Sacks is known to be part of the “PayPal Mafia,” the name for the group of former PayPal employees and executives that has gone on to shape tech and finance in the form of influential figures such as well-known Trump supporters Peter Thiel and Elon Musk.
Musk, who leads AI startup xAI and was named by Trump to co-lead the Department of Government Efficiency, is an enthusiast of cryptocurrencies. He was one of the early proponents, telling CNBC in 2017, “It feels like we are witnessing the birth of a new kind of web. Some people have called it the decentralized web or the internet of money.
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