David Sacks has criticized Senator Elizabeth Warren for obstructing crypto innovation in the United States under Biden’s administration. He argued that Warren’s actions could push digital asset innovation offshore, harming the nation’s technological edge.
Sacks emphasized that the country must foster crypto growth rather than suppress it, especially as the financial future increasingly leans on blockchain technologies.
David Sacks Denies Gaining From Crypto
David Sacks defended his record after Warren questioned his financial interests tied to Bitcoin and other digital assets. She accused him of favoring policies that boost specific cryptocurrencies while easing regulatory enforcement. In response, Sacks stated he sold his holdings, including a $74,000 position in Bitwise, on January 22.
BREAKING: Elizabeth Warren controlled the autopen during the Biden administration, claims White House AI & Crypto Czar David Sacks. pic.twitter.com/nwSKHiDLpz
— Leading Report (@LeadingReport) May 28, 2025
He confirmed he also exited his stake in Multicoin Capital before assuming his advisory role in the Trump administration. Warren demanded proof and requested timelines to verify the exits by his firm, Craft Ventures. Sacks maintained that he followed all necessary protocols and did not benefit personally from crypto policymaking.
In her March 6 letter, Warren asked for full transparency regarding Sacks’ financial disclosures with the Office of Government Ethics. She expressed concerns over potential conflicts of interest and called for strict adherence to federal ethics rules. However, Sacks insisted his financial moves were in line with legal standards and ethical expectations.
Ethereum-Linked Stablecoins Raise Alarm
The Massachusetts senator criticized Ethereum’s recent developments, including the launch of USD1, a stablecoin tied to Trump’s DeFi project. She alleged that the legislation supporting stablecoins may benefit the Trump administration’s financial interests. The launch of USD1 on Ethereum and Binance’s BNB Chain raised concerns about transparency and regulation.
David Sacks, who supports broader crypto adoption, argued such innovation must happen within U.S. borders to retain leadership. But Warren continued pushing back, warning against bills that potentially prioritize financial gains for administration insiders. She linked stablecoin growth to insufficient regulatory oversight and the risk of market manipulation.
During her remarks, Warren stressed the importance of high ethical standards and cautioned against using federal power for personal enrichment. She cited Paul Atkins’ nomination to a key crypto advisory role and criticized his industry ties. Warren insisted that all public officials involved in crypto legislation must commit to stronger disclosure and accountability.
National Security Risks of Unregulated Crypto
Senator Warren raised national security concerns tied to unregulated crypto flows supporting U.S. adversaries like Iran and North Korea. She questioned intelligence leaders on how digital currencies help these nations bypass sanctions and fund activities. Avril Haines confirmed that crypto enabled significant foreign currency revenues, especially for North Korea.
Warren continued her inquiry by asking Lieutenant General Jeffrey Kruse about Iran’s crypto use in generating discretionary revenue. Kruse responded that digital assets have strengthened Iran’s financial independence despite ongoing sanctions. These concerns underscored Warren’s push for strict anti-money laundering measures in crypto markets.
David Sacks, however, emphasized that regulation should not stifle innovation or deter blockchain progress in America. He maintained that national security and innovation can co-exist with balanced policies. But Warren’s focus remained on preventing rogue nations from exploiting digital loopholes and ensuring U.S. laws keep pace with crypto growth.
FAQs
Why did David Sacks criticize Elizabeth Warren?
David Sacks accused Warren of driving crypto innovation offshore and discouraging investment within the United States.
What financial disclosures did Warren request from Sacks?
Warren requested details on Sacks’ crypto holdings, divestments, and any related filings with the Office of Government Ethics.
What is the controversy around the stablecoin USD1?
Warren linked the stablecoin to Trump’s DeFi project and raised concerns over ethical and financial conflicts of interest.
How does national security relate to crypto regulation?
Warren highlighted that unregulated crypto could help U.S. adversaries like Iran and North Korea bypass sanctions and generate revenue.
What role does David Sacks play in crypto policy?
David Sacks serves as a crypto and AI advisor under the Trump administration and advocates for innovation-friendly regulations.
Glossary of Key Terms
David Sacks – A venture capitalist and advisor to the Trump administration on crypto and artificial intelligence policy.
Stablecoin – A type of cryptocurrency that pegs its value to a stable asset like the U.S. dollar.
Bitwise Investment – A crypto asset management firm where David Sacks previously held a financial stake.
Multicoin Capital – A crypto investment fund linked to David Sacks before his government appointment.
USD1 – A stablecoin issued through the Trump-linked DeFi platform World Liberty Financial on Ethereum and Binance.
Craft Ventures – David Sacks’ investment firm, scrutinized for its past crypto holdings.
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