Why David Sacks Sold His Crypto Holdings Before Taking on the “Crypto Czar” Role

David Sacks, appointed by President Donald Trump as the “Crypto Czar” in late 2024, recently announced that he has sold his entire cryptocurrency portfolio.

Here’s how experts and the crypto community are reacting to this unexpected move.

3 Reasons Why David Sacks Sold His Entire Crypto Portfolio

In a recent tweet on X (formerly Twitter), the Trump administration’s “Crypto Czar” confirmed that he sold all of his personal crypto assets ahead of the administration’s official start in January 2025. Specifically, David Sacks’ cryptocurrency portfolio included Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).

David Sacks’ decision to withdraw from the market is seen as a personal choice. The community had given significant attention to his appointment, expecting him to promote crypto-friendly policies, facilitate the establishment of a national Bitcoin reserve for the US government, and balance investor protection with industry growth.

However, his decision to sell all crypto holdings can be understood through the following three reasons.

The first reason could be avoiding conflicts of interest. By not owning any cryptocurrencies, Sacks ensures there are no conflicts between his personal interests and those of the US government.

Secondly, the move signals neutrality. As the leader of US cryptocurrency-related policies, David Sacks needs to maintain transparency and objectivity. Owning any crypto could raise suspicions of bias whenever he makes decisions impacting the market.

The third reason could be compliance with ethics regulations. Senior US government officials are often required to disclose their assets. In some cases, officials need to divest from sectors directly related to their duties. For Sacks, relinquishing his crypto holdings is a logical step to meet federal ethics standards.

Some X users also suggested that David Sacks still holds a large amount of crypto indirectly through his status as an investor in Bitwise Asset Management.

David Sacks’ Craft Ventures has been an investor in Bitwise since 2017. Source: Craft Ventures

However, Sacks has responded to this issue, claiming that it is not true.

“This community note is a lie. I had a $74k position in the Bitwise ETF which I sold on January 22. I do not have “large indirect holdings.” I’ll provide an update at the end of the ethics process,” Sacks posted on X.

In summary, David Sacks’ sale of his entire crypto portfolio does not definitively signal a rejection of the industry. It could just be “normal administrative procedure” and does not reflect his negative views on Crypto.

Nevertheless, due to investors’ sensitive psychology, Bitcoin and some altcoin prices have shown noticeable volatility.