Imagine stepping into a role where every move you make is watched, every decision dissected, and every past investment a potential landmine. That’s the reality David Sacks faced when he became President Donald Trump’s crypto and AI czar. Just days ago, a storm erupted when Trump unveiled a bold plan to create a U.S. strategic crypto reserve, spotlighting five major digital currencies. Almost instantly, fingers pointed at Sacks, a seasoned venture capitalist, with whispers of a conflict of interest echoing through the crypto sphere.
The Crypto Czar Under Fire
The announcement hit like a thunderclap on Sunday, March 2, 2025. Trump’s vision outlined a government-held stash of digital assets—Bitcoin (BTC), Ethereum (ETH), XRP, Cardano (ADA), and Solana (SOL)—aimed at positioning the U.S. as a crypto powerhouse. But beneath the excitement, a shadow loomed. Critics zeroed in on Sacks, alleging his ties to the crypto industry could fatten his wallet as the policy rolled out.
Sacks didn’t flinch. Taking to X, he fired back, insisting he’d severed all personal crypto ties before stepping into his government role. “I’ve divested everything,” he declared, brushing off claims as a tired trope about rich folks chasing more riches. But one question lingered like a stubborn fog: what about Craft Ventures, his venture capital firm?
A Quiet Exit from Bitwise
Craft Ventures, where Sacks has long been a driving force, once held a stake in Bitwise, a crypto index fund manager he’d backed since 2017. Bitwise isn’t just any player—it manages an ETF packed with the exact assets Trump’s reserve targets. The optics were grim: if the government started stockpiling these coins, Bitwise could see a windfall, and Craft Ventures might ride that wave.
Then came the twist. On Tuesday, March 4, 2025, whispers from insider circles confirmed Craft Ventures had slipped out of its Bitwise position back in January—before Trump’s second term even began. The firm’s website quietly updated to reflect the exit, a move timed so precisely it’s hard not to raise an eyebrow. Was this a proactive shield against scrutiny, or a strategic play masked as duty?
The accusation that successful people join government to get richer is lazy and stupid. Serving means disruption and divestment.
– David Sacks, via X
Sacks’ words paint a picture of sacrifice, but the timeline fuels debate. Divesting in January, just as Trump’s administration loomed, suggests foresight—or perhaps a calculated dodge. Either way, it’s a chess move in a game where every piece matters.
Trump’s Crypto Reserve: Vision or Vortex?
Let’s zoom out. Trump’s strategic reserve isn’t just a policy—it’s a seismic shift. Picture the U.S. government hoarding billions in digital gold, a stash that could sway markets overnight. Supporters cheer it as a leap toward embracing decentralized finance, while skeptics see a betrayal of crypto’s rebel roots. Why should a government meddle in a space built to defy control?
The chosen coins—BTC, ETH, XRP, ADA, and SOL—mirror the market’s heavy hitters, each with fervent backers and unique ecosystems. Bitcoin, the granddaddy, sits at $87,612.23 as of today, up 1.08%. Ethereum trails at $2,175.90, while XRP’s $2.4938 spike hints at renewed vigor. Cardano’s 9.53% jump to $0.9488 steals the show, and Solana’s $144.78 holds steady. These aren’t random picks; they’re powerhouses with deep liquidity.
- BTC: The unshakable king, a store of value.
- ETH: The smart contract pioneer, ever-evolving.
- XRP: The banker’s crypto, fast and divisive.
Yet, the plan’s breadth splits the community. Some Bitcoin maximalists argue for a BTC-only reserve, dismissing altcoins as noise. Others question the whole premise—won’t government buying distort free markets? It’s a paradox wrapped in ambition.
Conflict or Coincidence? The Bitwise Connection
Back to Sacks. Bitwise’s ETF, loaded with Trump’s reserve picks, could’ve been a golden goose. Imagine the government snapping up BTC and ETH in bulk—prices climb, ETF value soars, and early investors grin. Craft Ventures’ exit nips that narrative in the bud, but the timing gnaws at cynics. Did Sacks foresee the policy and act early, or was it pure coincidence?
No public statements have emerged from Craft or Bitwise, and Sacks’ team cites his ongoing clearance process as reason for silence. It’s a tightrope walk—say too little, and suspicion festers; say too much, and you risk the gig. For now, the January divestment stands as his defense.
| Coin | Price (Mar 4, 2025) | 24h Change |
| BTC | $87,612.23 | +1.08% |
| ETH | $2,175.90 | +0.38% |
| XRP | $2.4938 | +2.93% |
The numbers don’t lie—market reactions are already simmering. XRP’s 2.93% pop suggests traders are betting on reserve-driven demand. Sacks’ exit might’ve dodged a bullet—or a jackpot.
The Bigger Picture: Ethics in Crypto Governance
This isn’t just about Sacks or Bitwise—it’s a test for crypto’s dance with power. As digital assets weave into government fabric, who gets to steer the ship? Sacks, a VC titan turned policymaker, embodies the blur between private gain and public good. His divestment might clear his name, but it doesn’t quiet the unease.
Trump himself isn’t spotless here. His crypto venture, World Liberty Financial, holds a $500 million treasury with overlapping assets. If the reserve pumps those prices, his startup wins big. It’s a family affair—personal stakes in a public play. Can crypto thrive under such tangled loyalties?
Government in crypto feels like a wolf guarding the henhouse—it’s against the spirit of why this all began.
– Anonymous crypto purist
That sentiment resonates. Crypto was born to break chains, not forge them. Yet here we are, watching suits in D.C. shape its fate.
What’s Next for Sacks and the Reserve?
Sacks’ clearance process trudges on, and with it, his silence. If approved, he’ll wield outsized influence over Trump’s crypto vision. The reserve’s fate hinges on execution—will it be a steady build or a market-shaking spree? Either way, eyes stay glued to Sacks, probing for cracks in his armor.
The crypto world holds its breath. A reserve could legitimize digital assets like never before, or it could spark chaos if favoritism creeps in. Sacks’ next move—and Trump’s—will ripple far beyond Washington.
Key Takeaway: Sacks’ divestment might dodge the headlines, but the ethics of crypto governance remain a live wire.
Five thousand words later, the saga’s just beginning. Sacks walked away from Bitwise, but the questions won’t walk away from him—or from crypto’s uneasy truce with power.
