With the White House’s first Digital Assets Summit just hours away, Senator Elizabeth Warren (D-Mass.) has sent a letter to David Sacks, the Trump administration’s White House AI and Crypto Czar, raising concerns about potential conflicts of interest in the government’s crypto policy.
Warren’s Concerns Over Sacks’ Industry Ties
According to a report by Axios, Warren’s letter questions how the federal government’s increasing involvement in blockchain could benefit existing cryptocurrency holders, potentially leading to conflicts of interest. She specifically focuses on Sacks’ past connections to crypto firms, particularly his former role at Craft Ventures, which invested in crypto companies like Fold, Lightning Labs, and Bitwise.
“The planned Crypto Strategic Reserve is just the most recent example of a Trump Administration crypto policy with the potential to benefit a wealthy, well-connected few at the expense of taxpayers.”
— Elizabeth Warren
Warren points out that Bitwise’s top five holdings closely align with the five tokens mentioned in President Trump’s recent announcement about the Strategic Crypto Reserve. She is also seeking clarification on whether Sacks or individuals involved in the reserve’s policy engaged in trades related to these assets before the public announcement.
Sacks’ Exemption from Ethics Rules
Sacks, serving as a special government employee, is exempt from certain federal ethics rules, including financial disclosure requirements. This has raised further scrutiny over whether there was prior knowledge or financial gain from the reserve’s announcement.
“Despite your public statements via X, it remains unclear exactly when you personally divested from BTC, ETH, and SOL, when Craft Ventures divested from Bitwise, and whether people close to you ‘may have held positions and sold into the recent price surge.’”
— Elizabeth Warren
Potential Legal Shield for Trump’s Crypto Ventures
Warren also noted that the U.S. Securities and Exchange Commission (SEC) should clarify its stance on memecoins, as regulatory protections might shield companies and individuals from litigation. She raised concerns that Trump’s coin ventures, such as Official Trump (TRUMP) and Melania Meme (MELANIA), could indirectly benefit from government decisions regarding crypto regulation.
The White House Crypto Summit and Strategic Bitcoin Reserve
The White House Crypto Summit is set to take place from 1:30 p.m. to 5:30 p.m. ET on March 7, with industry leaders expected to discuss the future of digital assets in the U.S..
Earlier this week, President Donald Trump signed an executive order to establish a Strategic Bitcoin Reserve, which will be funded by Bitcoin seized through asset forfeiture—eliminating costs for taxpayers. According to David Sacks, the U.S. government holds around 200,000 BTC, though no full audit has been conducted yet. The order mandates a comprehensive review of federal digital asset holdings and forbids the sale of Bitcoin in the reserve, likening it to a “digital Fort Knox.”
Looking Ahead
With the White House’s increasing focus on cryptocurrency, Warren’s inquiry underscores the political and financial complexities surrounding government involvement in digital assets. The outcome of the Crypto Summit and further investigations into potential conflicts of interest could shape the direction of U.S. crypto policy in the months ahead.
