David Sacks, former COO of PayPal and prominent venture capitalist, has been named the new “crypto and AI czar” by incoming President Donald Trump. The announcement was made Thursday via Truth Social, Trump’s social media platform, where he described Sacks’ role as pivotal in shaping a legal framework for the cryptocurrency industry in the United States.
“[Sacks] will work on a legal framework so the Crypto [sic] industry has the clarity it has been asking for, and can thrive in the US,” Trump wrote, signaling a potential shift in the U.S. government’s stance on crypto regulation.
Sacks is a notable figure in Silicon Valley, best known as a member of the “PayPal Mafia,” a group of early PayPal executives and employees who have gone on to influence the tech industry profoundly. He co-founded Yammer, an enterprise communication tool that Microsoft acquired in 2012 for $1.2 billion. As the founder of Craft Ventures, Sacks has supported startups such as SpaceX, Reddit, and ClickUp, making him a significant player in the venture capital world.
Sacks has long been an advocate for cryptocurrencies. In a 2017 CNBC interview, he argued that Bitcoin and Ethereum align with PayPal’s original vision of creating a “database of money” where payments remain entirely within the system. His appointment suggests that the Trump administration will focus on providing regulatory clarity to foster growth in the crypto industry.
While Sacks’ stance on AI policymaking is less well-documented, his general approach to regulation tends to favor deregulatory policies. This could indicate a significant departure from the outgoing Biden administration, which prioritized stricter AI governance and safety measures. Under Sacks’ guidance, the U.S. may adopt a more hands-off approach, potentially fostering faster innovation but raising concerns among critics about unchecked technological risks.
Sacks’ appointment comes at a critical moment for both the cryptocurrency and AI industries. The crypto sector has faced increased scrutiny and regulatory uncertainty, while AI has sparked global debates about ethical guidelines and governance. Sacks’ track record in tech and venture capital suggests he could push for policies that prioritize industry growth and innovation, aligning with the broader pro-business stance of the Trump administration.
As Sacks takes on this high-profile role, stakeholders in the crypto and AI sectors will closely watch how his leadership shapes the future of U.S. tech policy. With a background in pioneering technologies and a vision for crypto’s potential, his approach could redefine the country’s position in these rapidly evolving industries.
In the United States, czars are generally executive branch officials appointed by the head of the executive branch (such as the president for the federal government, or the governor of a state). Czars may require confirmation with Senate approval while others do not. Some appointees outside the executive branch are called czars as well. Specific instances of the term are often a media creation.