A known cryptocurrency supporter has been appointed by US President-elect Donald Trump as the first-ever “White House AI & Crypto Czar” who will oversee the crafting of government policies on AI and crypto.
Appointing former PayPal executive David Sacks as the crypto czar is widely seen as Trump delivering on his campaign promise to reform US cryptocurrency regulations and create an environment where the industry can thrive.
Overhauling Crypto Policy
Trump announced the appointment of Sacks as White House AI and crypto czar to spearhead the overhauling of the government’s policies on cryptocurrency.
“He will work on a legal framework so the crypto industry gets the clarity it has been asking for, and can thrive in the US,” Trump said on the role of the digital currency chief.
Trump has been appointing crypto personalities in key government roles, which analysts see as a move that would transform American policies concerning the digital asset industry.
“Sacks will likely have a light touch on regulation, but not without some guardrails,” Kindred Ventures founder Steve Jang said.
No Stranger To Digital Currency
Reports said that the former Chief Operating Officer of PayPal is no stranger to cryptocurrency, adding that his firm, Multicoin Capital, is known as among the early supporters of Solana.
BREAKING: Trump names David Sacks as AI, crypto czar https://t.co/43gCbklme3
— The Hill (@thehill) December 6, 2024
Even after the crypto exchange FTX collapsed, Sacks continued to have faith in Solana, predicting that the coin would eventually outperform Ethereum.
The former PayPal executive will also chair the Presidential Council of Advisors for Science and Technology. One of Trump’s staunch supporters, Tesla CEO Elon Musk, is a close friend of Sacks.
Clear Regulations On Crypto
Trump said that Sacks will be tasked to create a legal framework on cryptocurrency, giving clarity on the rules that govern the digital asset industry to allow it to flourish.
Analysts see that the framework will solve any regulatory confusion and address whether cryptocurrencies should be treated as securities or commodities.
“David will safeguard Free Speech online, and steer us away from Big Tech bias and censorship,” Trump explained.
Cryptocurrencies As Commodities
The incoming crypto leader believes that several digital currencies are commodities and should be under the guardianship of the Commodity Futures Trading Commission (CFTC).
As the crypto czar, Sacks will have to work directly with the US Congress, the Securities and Exchange Commission (SEC), and other federal agencies.
Crypto supporters and investors have strongly criticized the current chairman of the Securities and Exchange Commissioin, Gary Gensler, for his anti-crypto regulations that target digital asset firms.
Sacks condemned Gensler’s approach to crypto, saying that under the Trump administration, the SEC’s influence over cryptocurrencies would diminish.
Featured image from DALL-E, chart from TradingView
