Trump taps Silicon Valley tech billionaire to drive crypto and AI innovation

In a process that required numerous efforts in the United States cryptocurrency In a surprise move, President-elect Donald Trump announced the appointment of Silicon Valley tech entrepreneur David Sacks as the first-ever AI and crypto “czar” in the White House.

Sacks, 52, is a billionaire tech executive, venture capitalist and podcaster who made his money growing a handful of successful tech companies, including PayPal and Yammer, a workplace social networking service which he sold to Microsoft in 2012 for $1.2 billion. He is a close friend and ally of the CEO of Tesla Elon Muskone of the president-elect's main advisors, with an ear for many issues, including decision-making for key administration positions. He is also friends with Vice President-elect JD Vance and was an early investor in Vance's venture capital firm Narya Capital.

“In this important role, David will guide the administration's policy on artificial intelligence and cryptocurrency, two areas critical to the future of American competitiveness,” Trump said in a statement posted Thursday evening on his Truth account. Social. “David will work to make America the undisputed world leader in both areas.”

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David Sacks, CEO of Zenefits, speaks at TechCrunch Disrupt 2016 in San Francisco, California, United States, September 13, 2016. (Reuters/Beck Diefenbach / Reuters)

According to Trump, one of Sacks' responsibilities will include helping to develop a legal framework for the $3 trillion cryptocurrency industry, as well as leading the President's Council of Cryptocurrency Advisors. science and technology, a group dedicated to advising the White House on policy related to technology and innovation.

Previous reports by FOX Business suggested that the Trump transition team is considering a role in the White House dedicated solely to advancing crypto policy, with one of the leading candidates for the position being Chris Giancarlo, the former chairman of the Trump's CFTC, also known as “Crypto Dad.” However, the addition of AI broadened the field of candidates considered and Sacks became a thought leader in AI's potential to transform business and technology.

The combination of crypto and AI under one policy umbrella has proven to be a welcome surprise for many in the digital assets industry as well as pro-crypto lawmakers who see the two industries complementing and advancing each other the United States technologically.

“What I like about [Donald Trump] David Sacks' appointment is the White House's implicit recognition that crypto and AI are the most strategic new technology areas for the United States and the world,” said Jeremy Allaire, CEO of stablecoin company Circle.

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Brian Armstrong, co-founder and CEO of Coinbase Inc., speaks at the Singapore Fintech Festival, in Singapore, Friday, November 4, 2022. The conference continues until November 4. Photographer: Bryan van der Beek/Bloomberg via Getty I am

“David Sacks is an excellent choice!” Brian Armstrong, CEO of Coinbase, said in a statement. job on his X account. “It's amazing to think of what's possible with sharp, pro-tech, pro-business people in government.”

Jake Chervinsky, chief legal officer at crypto venture capital firm Variant, said the appointment indicates the new administration wants to revive growth in two sectors where the United States is seen as being outpaced by other countries with policies less strict regulations.

“For those wondering whether crypto and AI belong in the same political portfolio, know that the main directive the government must follow in both cases is this: get out of the way,” he said in a press release. post on. “Yes, the time will come for new laws and regulations, but first, David Sacks can allow builders to build freely.”

While some in the crypto world worry that Sacks “isn't crypto enough” for the role, the tech lead has been a strong advocate of crypto and blockchain technology for several years. In a 2017 interview, he said Bitcoin fulfilled PayPal's original vision of creating a “new global currency,” something supporters of the world's largest digital asset see in it. Sacks has been a vocal critic of government overregulation regarding crypto and AI on the popular podcast “All In” which he co-hosts alongside Chamath Palihapitiya, Jason Calacanis and David Friedberg. He has also invested in a handful of crypto-related companies, including Coinbase, Bitwise, Anchorage Digital, Circle, and Uniswap, through his venture capital firm Craft Ventures.

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Trump's nomination of Sacks underscores how powerful the influence of the so-called “PayPal Mafia,” a group of about 10 company founders including Musk, Sacks and venture capitalist Peter Thiel, is expected to be in the new administration. Thiel, who later co-founded the data software company Palantir, is a friend and former boss of Trump's vice president-elect JD Vance, and Thiel played a key role in nominating Vance to the position. Musk, meanwhile, will lead the new Government Department Effectiveness Council alongside Vivek Ramaswamy, where the two plan to cut billions of dollars' worth of federal spending.

Sacks and Musk raised large sums of money for Trump during his campaign. Sacks raised at least $12 million for the president-elect at a fundraiser at his Silicon Valley residence in June, while Musk reportedly raised more than $100 million.