U.S. Senator Elizabeth Warren has raised concerns about potential conflicts of interest involving David Sacks, President Donald Trump’s Special Advisor for AI and Crypto. In a letter sent to Sacks, Warren called for transparency regarding his financial disclosures and how he plans to address any conflicts of interest amid the Administration's crypto policies.
Warren expressed apprehension over the Administration's move to selectively promote certain cryptocurrencies, including those previously invested in by Sacks, through a proposed "Crypto Strategic Reserve." The announcement of this reserve led to fluctuations in crypto prices, sparking fears of market manipulation and insider trading. Warren urged Sacks to clarify when he divested from these assets and whether associates may have profited from prior knowledge of the Administration's plans.
"Despite your public statements via X, it remains unclear exactly when you personally divested from BTC, ETH, and SOL," Warren stated in her letter. She also questioned whether individuals close to Sacks had benefited financially during recent price surges.
President Trump recently signed an executive order establishing a strategic bitcoin reserve. This afternoon at the White House Crypto Summit, the Administration is expected to officially launch the reserve with top industry executives present. Concerns have been raised about some attendees who have had legal cases against them dropped by the SEC under Trump's leadership.
"The planned Crypto Strategic Reserve is just the most recent example of a Trump Administration crypto policy with the potential to benefit a wealthy, well-connected few at the expense of taxpayers," wrote Warren. She highlighted that Coinbase CEO Brian Armstrong will be attending today's summit following the SEC's decision not to pursue a case against him.
Senator Warren has requested a response from Sacks by March 14, 2025, ensuring that he has made appropriate divestments and holds no investments presenting conflicts of interest. "Americans deserve strong leaders who will prioritize the public interest ahead of their own bottom lines," she wrote.
The White House Crypto Summit coincides with broader Republican efforts to reduce financial consumer protections. Senate Republicans recently passed legislation blocking measures against fraud in payment apps like Venmo and CashApp. Additionally, they are set to advance a bill allowing Elon Musk’s "X Money" as a stablecoin without consumer safeguards.