White House Crypto Czar Faces Conflict of Interest Questions: How to Balance the Roles of Regulator and Investor?

[Crypto Circle] The newly established White House “crypto czar” position has recently become embroiled in a conflict of interest controversy.

The person at the center of the storm is David Sacks, a seasoned Silicon Valley veteran—an early core member of the PayPal team and later founder of Craft Ventures. Last December, Trump directly appointed him as a dual advisor to the White House on AI and crypto, with a special focus on these two emerging sectors.

He certainly moved fast after taking office. The executive order on Bitcoin strategic reserves? That was his initiative. Pushing federal agencies to re-examine the classification of crypto assets? Also orchestrated by him. Sacks himself has said, “Crypto policy was something to be handled in the first week.” That being said, this guy is also an early investor in Bitwise and dYdX, holding a substantial stake.

Now here’s the problem: How do you reconcile making the rules while also being a player at the table? There’s been a lot of skepticism about the scope of his authority and the transparency of this special position. When the regulator and the regulated are the same person, anyone would have to give it some serious thought.