As the White House’s Digital Assets Summit approaches, Senator Elizabeth Warren has sent a letter to David Sacks questioning his connections to crypto firm Bitwise.
With hours left before the White House’s first Digital Assets Summit on Friday, March 7, Senator Elizabeth Warren (D.-Mass.) sent a letter to David Sacks, the Donald Trump administration’s White House AI and Crypto Czar, raising concerns over potential conflicts of interest, Axios has learned, citing Warren’s letter.
In the letter, Warren questions how the federal government’s increasing involvement in blockchain could benefit existing cryptocurrency holders, potentially creating conflicts of interest. She specifically asked Sacks about his connections to the industry, zeroing in on his past links to crypto companies.
“The planned Crypto Strategic Reserve is just the most recent example of a Trump Administration crypto policy with the potential to benefit a wealthy, well-connected few at the expense of taxpayers.”
Elizabeth Warren
Sacks, who is a special government employee, is exempt from some ethics rules, including those related to financial disclosures.
He has faced scrutiny over his previous role at Craft Ventures, which backed crypto companies like Fold, Lightning Labs, and Bitwise, a crypto firm whose top five holdings match the five tokens mentioned in President Trump’s recent announcement of a strategic crypto reserve, Warren points out.
The senator is also seeking clarity on whether Sacks or anyone involved in the reserve policy made trades related to the assets prior to the announcement.
“Despite your public statements via X, it remains unclear exactly when you personally divested from BTC, ETH, and SOL, when Craft Ventures divested from Bitwise, and whether people close to you ‘may have held positions and sold into the recent price surge.’”
Elizabeth Warren
Warren further emphasized that the U.S. Securities and Exchange Commission’s stance should shield companies and individuals that create memecoins from potential litigation, which might directly benefit President Trump’s coin ventures, such as Official Trump (TRUMP) and MELANIA (MELANIA).
It’s assumed that the White House Crypto Summit will take place from 1:30 p.m. to 5:30 p.m. ET on Friday, March 7.
As crypto.news reported earlier, U.S. President Donald Trump has signed an executive order to establish a Strategic Bitcoin Reserve. The reserve will be funded with Bitcoin (BTC) seized by the federal government through asset forfeiture, which means that taxpayers won’t incur any costs.
Per Sacks, the U.S. government currently holds around 200,000 BTC, though no full audit has been conducted yet. The executive order requires a complete accounting of federal digital asset holdings and forbids the sale of Bitcoin in the reserve, comparing it to a “digital Fort Knox.”
