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Democrats are investigating Trump crypto advisor David Sacks over a possible SGE violation

by admin September 17, 2025


Senator Elizabeth Warren (D-MA) and Representative Melanie Stansbury (D-N.M.) are leading a group of congressional Democrats in investigating White House Special Advisor David Sacks for possibly serving in his position for longer than he’s allowed. Sacks, a former PayPal executive and venture capitalist at Craft Ventures, was originally picked by President Donald Trump to be the “White House A.I. & Crypto Czar” in 2024.

“Any effort to stay beyond the time limits imposed on you as a Special Government Employee (SGE) would raise additional ethics concerns for you and the Trump Administration,” the group writes in a letter to Sacks,”particularly as it moves to implement recently enacted cryptocurrency legislation and put in place new rules for the crypto industry.”

Besides being friendly with the Trump campaign and allies like Elon Musk, Sacks was given his position because of his knowledge of the crypto and AI industries as an investor. That poses an obvious conflict of interest, something that’s only waived during the 130-day limit that SGEs are supposed to serve. As Warren and the other Democrats backing the investigation note, though, it’s possible Sacks has been working in his role for longer than that.

“If you have worked every calendar day since the presidential inauguration, your 130th day of work in this role was May 29, 2025,” the group writes. “If you have worked every business day, your 130th day was July 25, 2025. As of the date of this letter, it is the 167th business day of this Administration.”

As part of the investigation, Sacks is expected to offer a more detailed account of when and how he works in his advisory role, including if he answers government emails while working in Silicon Valley. Congressional Democrats are trying to verify if norms have been violated to make sure that they won’t be violated in the future, but there are larger ethical concerns to contend with, too.

The second Trump administration has been friendly to the crypto industry, likely thanks in part to the influence of Sacks. Trump signed an executive order calling for the creation of a federal Bitcoin stockpile and signed the GENIUS Act into law in July, establishing a regulatory framework for stablecoins, a type of cryptocurrency typically tied to the value of the US dollar. Continuing to serve in his role without leaving his position at Craft Ventures or disclosing his investments would only raise more questions about how Sacks stands to benefit from advising on regulation.



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September 17, 2025 0 comments
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Crypto Trends

Democrats in Congress Call Foul on Status of Trump’s Crypto Czar David Sacks

by admin September 17, 2025



President Donald Trump’s top adviser on crypto, David Sacks, is working under a “special government employee” status that’s meant to be for officials serviing an important but temporary duty with the federal government, and Senator Elizabeth Warren penned a letter with other Democrats in Congress asking him whether he’s overstepped that window.

Such an employee isn’t allowed to serve more than 130 days in a year, according to the law, and the Wednesday letter to Sacks asks him to put a number on the days the prominent venture capitalist has worked for Trump in the role as crypto and artificial intelligence czar. Under the rules, any day in which he’s done work counts against that 130, though in some agencies, the limit has commonly been governed by a “good faith” estimate of how long the official expects to serve.

“If you have worked every business day, your 130th day was July 25, 2025,” according to the letter signed by Warren and several other members of the Senate and House of Representatives, including Bernie Sanders. The lawmakers called their review of this timeline since the January 20 start of the administration an “investigation.”

“If you have indeed passed the 130th day mark, you are undermining the careful balance Congress struck in creating the SGE designation. It is only because of your designation as an SGE that you have been able to continue working for and being paid by Craft Ventures during your time in government,” read the letter.

Trump has used the temporary employment status in a high-profile fashion, also employing Tesla CEO Elon Musk in that capacity. The personnel tool is designed to be used to bring expertise into government without having to clear some of the bureaucratic hoops of typical hiring. Earlier this year, other Democrats in Congress pushed a bill that sought to inhibit such employees from using the role to seek financial gain, and Warren also pursued legislation to limit SGEs.

There have been more than 170 business days since Trump took office. Since then, Sacks has been running the president’s aggressive pro-crypto agenda, which has so far celebrated one major new law to regulate U.S. stablecoin issuers — leading to a White House signing ceremony that Sacks attended.

He’s also acted as the boss of the administration’s day-to-day crypto adviser, which had originally been Bo Hines until he left to work for Tether as its top U.S. executive. Patrick Witt replaced Hines as executive director of the President’s Council of Advisers on Digital Assets, and he told CoinDesk he’s still working closely with Sacks.



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September 17, 2025 0 comments
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Crypto Trends

Elizabeth Warren Probing Whether Trump’s AI and Crypto Czar David Sacks Broke Ethics Rules

by admin September 17, 2025



In brief

  • Elizabeth Warren and other liberal lawmakers questioned AI and crypto czar David Sacks on whether he has exceeded his 130-day limit as a temporary White House employee, raising ethics concerns.
  • The lawmakers want a full record of Sacks’ workdays and locations since January, noting his dual role at the White House and at his AI- and crypto-focused venture firm.
  • The inquiry follows a New York Times investigation linking the Trump family’s crypto platform to a UAE AI chip deal that Sacks reportedly helped finalize.

Sen. Elizabeth Warren (D-MA) and other prominent liberal lawmakers have turned up the heat on White House AI and crypto czar David Sacks, pressing the Trump administration official Wednesday on whether he has overstayed his temporary post and violated ethics rules.

In a letter sent to Sacks Wednesday morning and shared with Decrypt, Warren noted that as a Special Government Employee, the crypto czar is permitted to work in his position for only 130 days per year. 

“Any effort to stay beyond the time limits imposed on you as a Special Government Employee (SGE) would raise additional ethics concerns for you and the Trump Administration, particularly as it moves to implement recently enacted cryptocurrency legislation and put in place new rules for the crypto industry,” Warren wrote.



The letter was also signed by prominent lawmakers including Sen. Bernie Sanders (I-VT), Sen. Chris Van Hollen (D-MD), Sen. Richard Blumenthal (D-CT), and Rep. Rashida Tlaib (D-MI). 

Warren has requested Sacks to, within the next two weeks, provide the lawmakers with a list of days he has worked in any capacity for the Trump administration since his appointment in January, plus further details on where he has conducted said business, including in Silicon Valley. 

The White House did not immediately respond to Decrypt’s request for comment.

As a Special Government Employee, Sacks was permitted to remain at Craft Ventures—his Silicon Valley venture firm, which invests heavily in AI and crypto companies—even as he has continued to play a critical role in shaping the White House’s AI and crypto policy. 

That allowance is specifically granted only to temporary White House employees. Earlier this year, Elon Musk used a similar exception to continue operating his numerous businesses while running the Department of Government Efficiency (DOGE). 

Sacks has split his time between Silicon Valley and Washington D.C. since joining the Trump administration and has scrupulously used his working days so as to extend the period of his White House tenure, sources familiar with the matter told Decrypt. 

Warren’s inquiry comes days after the New York Times published an investigation linking the business dealings of the Trump family’s crypto platform, World Liberty Financial, to a recent lucrative agreement reached between the U.S. government and the UAE regarding AI chips. Sacks played a crucial role in getting the chip deal over the finish line, according to the report.

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