Is David Sacks' Crypto Reserve a Conflict of Interest?

Donald Trump’s announcement of an official U.S. Crypto Reserve has reignited market confidence and sent crypto assets soaring.

While the blockchain community celebrates another landmark move from Trump’s pro-crypto Administration, detractors have argued that White House Crypto Czar David Sacks is abusing his position for personal gain.

Does David Sacks still have exposure to crypto markets?

David Sacks Under Fire for Alleged Conflict of Interest

First mentioned in President Donald Trump’s executive order on crypto, a U.S. strategic digital asset reserve is one step closer to reality. 

On March 2nd, the ‘Crypto President’ confirmed that his administration would move forward with its decision to establish the U.S. Crypto Reserve. Based on Trump’s Truth Social post, the following assets have been earmarked for inclusion: $BTC, $ETH, $SOL, $XRP, and $ADA.

While the crypto community rejoiced in surging prices, the general public didn’t share their enthusiasm. 

Detractors have come out in force, denouncing White House Crypto Czar David Sacks and insinuating the official is manipulating Trump to pump his own bags.

However, David Sacks has denied foul play. In the face of rising criticism, Sacks asserted that he sold all his cryptocurrency holdings before President Trump’s inauguration.

“I Sold All My Cryptocurrency”

While David Sacks may not have any direct crypto holdings, it’s possible that the White House Crypto Czar could still have indirect exposure to the industry through other investments.

Through his firm Craft Ventures, Sacks is listed as the lead investor in Bitwise, an emerging crypto investment fund and ETP provider. Bitwise’s flagship fund, the Bitwise 10 Crypto Index Fund ($BITW), holds indexed and weighted allocations of the crypto industry’s top 10 assets, including the five coins Trump has greenlit for the U.S. Crypto Reserve.

Public figures within the crypto industry have stepped forward to defend Sacks. Self-proclaimed Bitcoin maximalist and Solana memecoin creator Fred Kreuger has bit back at Sack’s critics, arguing that $BITW and the U.S. Crypto Reserve hold the same tokens simply because they represent an index of the industry’s leading assets.

Beyond his investment in Bitwise, Sacks is also a liquidity provider for Multicoin Capital, a venture capital firm with significant holdings in Solana. 

The wider crypto community has also requested clarity on the scope and breadth of Sack’s other investments and involvements in the industry, both directly and indirectly. At press time, Sacks has declined to respond beyond confirming that he holds no cryptocurrency.

Which Country Will Be Next to Announce Crypto Reserve?

President Trump’s push to create a U.S. Crypto Reserve could represent a turning point for the blockchain industry. Alongside the U.S., a multitude of nation-states have been flirting with the idea of stockpiling crypto assets.

While El Salvador is the unabashed leader of world Bitcoin adoption, Brazil and Hong Kong have expressed an interest in managing their own stockpiles. Additionally, the Abu Dhabi sovereign wealth fund, Mubadala Investment Company, holds over $461M in BlackRock’s Bitcoin ETF ($IBIT)

Despite reports that the Switzerland National Bank (SNB) was exploring the possibility of creating a crypto reserve, SNB President Martin Schlegel has rejected the proposal.

Read More on SolanaFloor

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