Democrats Scrutinize Trump's Crypto Czar David Sacks Over Special Government Employee Status
Democrats in Congress are raising concerns about the tenure of David Sacks, President Donald Trump's top advisor on cryptocurrency and artificial intelligence. They are questioning whether Sacks, operating under a "special government employee" (SGE) status, has exceeded the legally permissible 130-day work limit for such positions.
Key Takeaways
- Democrats, led by Senator Elizabeth Warren, are investigating David Sacks' compliance with the 130-day work limit for Special Government Employees (SGEs).
- Sacks' role as Trump's crypto and AI czar is under scrutiny due to potential conflicts of interest stemming from his private investments.
- A spokesperson for Sacks claims he is managing his SGE days to stay within the legal limit.
Scrutiny Over SGE Status
Senator Elizabeth Warren, along with other members of the Senate and House of Representatives, has penned a letter to David Sacks demanding clarification on the number of days he has served in his role as the administration's crypto and AI czar. The "special government employee" designation is intended for individuals serving in temporary, important roles, with a legal limit of 130 days per year. The lawmakers argue that if Sacks has surpassed this limit, he is undermining the framework Congress established for such appointments. This status is crucial as it allows SGEs to continue their private-sector employment, such as Sacks' role at Craft Ventures, while serving the government.
Concerns About Conflicts of Interest
The lawmakers highlighted that Sacks is "deeply invested" in the crypto and AI sectors through his venture capital firm, Craft Ventures, and other holdings. They expressed concern that his government position could create conflicts of interest, especially since the White House reportedly waived ethics restrictions to allow him to maintain these investments. Senator Warren has previously questioned Sacks regarding his financial disclosures and his claims of divesting from digital assets before his government appointment, emphasizing the need for transparency.
Sacks' Defense
A spokesperson for David Sacks has stated that he is carefully managing his days as a special government employee to ensure he remains within the 130-day annual limit. The spokesperson clarified that these days do not necessarily have to be consecutive. As of the date of the inquiry, over 167 weekdays had passed since President Trump's inauguration, meaning Sacks would have needed to take approximately 37 days off to stay within the legal bounds.
Sacks' Role in Crypto Policy
Since joining the administration, Sacks has been instrumental in advancing President Trump's pro-crypto agenda. This includes the recent passage of a law regulating U.S. stablecoin issuers, a development Sacks attended at the White House. He also oversees the administration's day-to-day crypto advisory efforts, with Patrick Witt currently serving as the executive director of the President's Council of Advisers on Digital Assets and continuing to work closely with Sacks.