New Regulations Prompted David Sacks to Divest Crypto Holdings
White House AI and crypto advisor David Sacks recently addressed claims that he had “dumped” his cryptocurrency holdings, clarifying that his divestment was a result of government ethics rules that required him to do so following his appointment by President Donald Trump.
Sacks’ Statement
In a social media post on March 19, Sacks refuted reports suggesting that he had sold off his Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) investments, emphasizing that the characterization was misleading. He stated:
“I did not ‘dump’ my cryptocurrency; I divested it. Obviously, I would have preferred not to, but government ethics rules required it. It’s an honor to serve President Trump and the American people.”
Significant Liquidation
According to a White House memo, Sacks liquidated over $200 million in digital assets prior to Trump taking office. Additionally, his firm, Craft Ventures, exited positions in crypto-related stocks such as Coinbase (COIN), Robinhood (HOOD), and the Bitwise 10 Crypto Index Fund.
Impact on Administration
The move to divest came amidst scrutiny of Sacks’ role in the administration, leading to speculation about his influence on discussions regarding the inclusion of certain cryptocurrencies in a potential US digital asset reserve.
Media Influence and Perception
Sacks’ clarification reignited conversations about the portrayal of crypto in the media. Some industry insiders believe that skepticism surrounding digital assets shapes how news stories are presented.
Bankless HQ co-founder David Hoffman suggested that negative headlines reflect the general public sentiment rather than intentional bias. In response to Sacks’ post, Hoffman wrote:
“Most people are crypto-less and don’t want crypto to succeed because they are averse to the idea of making wealth in crypto. Media outlets craft headlines to cater to this sentiment.”
Binance founder Changpeng ‘CZ’ Zhao echoed this sentiment, claiming that media organizations prioritize engagement over accuracy. CZ stated:
“The media is focused on selling clicks, not upholding ethical standards.”
He also denounced a recent Wall Street Journal report alleging that the Trump family had considered acquiring a stake in Binance US in exchange for a pardon, labeling the story as unfounded.
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