What is Crypto Czar and Why did Trump Pick David Sacks?

President-elect Donald Trump has announced David Sacks as the first-ever White House AI and Crypto Czar. Sacks will lead policy development for artificial intelligence and cryptocurrency under Trump’s new administration. Trump highlighted Sacks’ role in developing a legal framework for the cryptocurrency industry. He will also chair the President’s Council of Advisors on Science and Technology.

The crypto czar is a key policy role focused on regulating and fostering innovation in the cryptocurrency sector. The position ensures the development of a clear legal framework for digital assets, addressing challenges like regulatory ambiguity and market stability. Also, it involves collaboration with financial institutions and tech leaders to position the U.S. as a global leader in crypto and blockchain innovation.

David Sacks, a venture capitalist, has a strong background in technology. He co-founded PayPal and served as its COO, becoming part of the “PayPal Mafia.” He also founded Yammer, a company later acquired by Microsoft for $1.2 billion. Through his venture fund Craft Ventures, Sacks has invested in major companies like Facebook, SpaceX, and Airbnb.

Sacks became a major Trump supporter after hosting a fundraiser in San Francisco this year. The event reportedly raised significant funds for Trump’s campaign. Sacks also played a key role in shaping Republican technology policies.

Ripple CEO Brad Garlinghouse responded positively to Sacks’ appointment. He praised Sacks for his deep understanding of technology and innovation. Garlinghouse called the selection of Sacks a “dream team” for advancing pro-crypto policies. He also expressed optimism about Trump’s approach to fostering growth in AI and cryptocurrency.

Trump stated that Sacks will address issues like Big Tech censorship and free speech. He emphasized the need for policies to protect innovation while reducing regulatory hurdles. Sacks’ role merges AI and cryptocurrency oversight into one unified position.

This announcement follows Trump’s decision to appoint Paul Atkins as the new SEC chair. Atkins, a conservative lawyer, is known for opposing regulations he considers unnecessarily burdensome. As the new SEC chair, he is expected to scale back strict enforcement policies implemented during the Biden administration. These appointments signal Trump’s intent to adopt pro-crypto and pro-innovation policies while re-examining existing regulatory frameworks.

Sacks’ selection reflects the administration’s support for Silicon Valley figures who backed Trump’s campaign. The announcement has drawn attention to the administration’s focus on boosting America’s competitiveness in key technology sectors.