- David Sacks urged Washington to create consistent crypto regulations to retain U.S. digital innovation.
- Sacks said Trump’s campaign promise to make America “the crypto capital” gained strong public support.
- He warned that overregulating AI could lead to government surveillance and information control.
President Trump’s Crypto and AI Czar, David Sacks, has renewed calls for the United States to regain its leadership in digital innovation, describing cryptocurrency as “the industry of the future.”
Speaking alongside Andreessen Horowitz co-founders Marc Andreessen and Ben Horowitz, Sacks urged Washington to establish clear and consistent crypto regulations to keep innovation onshore. He argued that the lack of a stable framework during the previous administration forced entrepreneurs to move their businesses abroad.
Sacks Slams “Regulation by Enforcement” Approach
Sacks criticized former SEC Chair Gary Gensler’s oversight during the Biden administration, saying entrepreneurs were prosecuted rather than guided. “All the entrepreneurs I’ve talked to say the same thing — just tell us what the rules are,” Sacks said.
He added that the policy of “regulation through enforcement” left startups uncertain and fearful of prosecution. According to him, this approach stifled innovation and slowed America’s ability to compete globally in blockchain technology.
He emphasized that President Trump’s campaign pledge to make the U.S. “the crypto capital of the planet” received strong public support. Sacks said Trump’s vow to remove Gensler and establish regulatory clarity resonated deeply with both voters and the business community.
Building the U.S. Strategic Bitcoin Reserve
Sacks played a key role in developing the U.S. Strategic Bitcoin Reserve, a program designed to hold Bitcoin already owned by the government through asset forfeitures. He clarified that the reserve would not rely on taxpayer funds and compared it to a “digital Fort Knox.” According to Sacks, the decision to hold rather than sell these assets aims to prevent losses like those from earlier government Bitcoin sales, which cost over $17 billion in missed gains.
During a “60 Minutes” interview, President Trump reaffirmed his stance, saying his focus was ensuring America remains “number one in crypto.” Sacks said providing clear and consistent regulations would allow entrepreneurs to operate within the U.S. while ensuring consumer protection.
Balancing Crypto and AI Policy
Sacks also discussed the administration’s dual focus on crypto and artificial intelligence. While advocating for clear crypto rules, he supported a more flexible approach for AI to drive innovation. He warned, however, that overregulating AI could lead to “Orwellian” systems capable of surveillance and information control.
Speaking on The Ben & Marc Show podcast, Sacks argued that misuse of AI should be punished under existing laws rather than restricting developers. He said both crypto and AI will define America’s technological competitiveness in the coming decade.
