President-elect Donald Trump announced on Thursday that David Sacks, former PayPal Chief Operating Officer, has been appointed as his “White House A.I. & Crypto Czar”, signaling a transformative approach to U.S. technology and cryptocurrency policy.
Trump revealed the news on his platform, Truth Social, emphasizing Sacks’ role in crafting a clear legal framework for the cryptocurrency industry. “He will work on a legal framework so the crypto industry has the clarity it has been asking for and can thrive in the U.S.,” Trump stated, without clarifying whether “czar” is an official title.
U.S. Policy Overhaul for Cryptocurrency and A.I.
The appointment of Sacks aligns with Trump’s vision of making the U.S. a global leader in technology and digital assets. Alongside Sacks, Trump’s incoming administration is forming a crypto advisory council and appointing key officials like the chairs of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to reshape regulations for cryptocurrencies and artificial intelligence (A.I.).
Trump’s tech backers, including Silicon Valley entrepreneurs, advocate for minimal regulation, warning that excessive rules could stifle innovation. Prominent investor Elad Gil, who has supported companies like Coinbase and Airbnb, praised Sacks’ appointment as a “strong move” in a post on X (formerly Twitter). Similarly, Sam Altman, CEO of OpenAI, congratulated Sacks on the same platform.
Regulation Priorities Under David Sacks
Industry leaders anticipate that Sacks will adopt a light-touch regulatory approach, balancing growth and safety. Steve Jang, founder of Kindred Ventures, predicted that Sacks will focus on regulating the application of A.I. in critical areas while leaving A.I. model development largely unregulated. This distinction was a contentious topic during debates over California’s failed SB 1047 bill, which sought to regulate A.I. model development.
Sacks’ expertise in cryptocurrencies is equally recognized. He has supported coins like Solana and demonstrated both technical and commercial competence in the field. According to Matthew Dibb, Chief Investment Officer at Astronaut Capital, Sacks’ appointment is “extremely bullish” for the crypto sector.
Pro-Crypto Leadership and Market Impact
Trump’s recent actions underscore his pro-crypto stance, despite having previously labeled cryptocurrency a scam. On Wednesday, he announced Paul Atkins, a prominent crypto advocate, as his nominee to lead the SEC. The move was celebrated by the industry as a step toward fostering innovation.
Trump’s campaign promises included making the U.S. the “crypto capital of the planet” and building a national bitcoin stockpile. His policies have already sparked confidence in the market, with bitcoin surging past $100,000 for the first time on Wednesday.
The Role of the “PayPal Mafia”
David Sacks, a South African-born entrepreneur, is a founding member of the so-called PayPal Mafia, a group of PayPal alumni who have become influential in tech and finance. This group includes prominent Trump supporters Peter Thieland Elon Musk, the latter of whom has been appointed as co-lead of Trump’s Department of Government Efficiency (DOGE).
Sacks, co-founder of Craft Ventures and creator of enterprise social network Yammer, was an early advocate of cryptocurrencies. In a 2017 CNBC interview, he described bitcoin as the foundation of a “decentralized web” or the “internet of money,” predicting its revolutionary impact on global finance.
In addition to leading U.S. crypto policy, Sacks will chair a White House Advisory Council on Science and Technology, further shaping the country’s tech landscape under the Trump administration.
