Trump Creates Presidential Tech Council, Nominates David Sacks for White House AI Advisory Role

US president-elect, Donald Trump has nominated David Sacks to serve as the AI and crypto czar in his administration. According to Yahoo Finance, the nomination of David for the White House AI spot underscores Trump’s intention to boost the two industries that are developing rapidly.

America’s Competitiveness

Sacks owns venture capitalist firm Craft Ventures LLC, one of the most prominent fundraisers and funders of Silicon Valley startups. Sacks will be the first person to hold the newly created position in the Trump administration where he is expected to lead the President’s Advisory Council on Science and Technology. Trump sees AI and crypto as important industries in boosting US competitiveness.

“David will guide policy for the Administration in Artificial Intelligence and Cryptocurrency, two areas critical to the future of American competitiveness. David will focus on making America the clear global leader in both areas,” the president-elect posted onTruth Social.

Venture capitalist David Sacks is a close associate of Vice-President elect JD Vance. In the run-up to the US elections, he fundraised for the Trump campaign from donors in the tech industry. In June 2024, Sacks co-hosted a fundraising event at his home in San Francisco.

Tech Background

Sacks has had a rich background in the tech industry. He first made a name for himself in the tech industry when he served as Paypal’s Chief Operating Officer. He founded Yammer, a workplace communications firm that Microsoft acquired for $1.2 billion in 2012. He later founded venture capital firm Craft Ventures in 2017.

Through this firm, Sacks has invested in various businesses owned by Elon Musk, including SpaceX. In his role as an advisor to the US president, Sacks is expected to work closely with Musk. Through xAI and Grok, Musk is a key player in the AI industry. Being one of the prominent Trump supporters, Musk will be wielding significant influence in the incoming administration.

Sacks’ appointment does not require him to disclose his assets or divest his businesses. He’ll be a special government employee who can serve up to 130 days a year, with or without being compensated. However, he’ll be required to adhere to conflict of interest rules. This means on matters that may impact his business interests, he’ll be expected to recuse himself.

Recently, Sacks said his firm’s legal documents would keep him from taking up full employment and a Craft Venture’s spokesperson said he will not be leaving the firm. Trump said that his appointee will help in safeguarding free speech online and help the country prevent big tech censorship and bias. Sacks is known to have a keen interest in protecting free speech.

Sacks’ Stand on Crypto Regulation

Although his venture capital firm invests more on enterprise software than crypto, Sacks holds strong opinions about the sector. His company has made several crypto investments that include Bitwise and BitGo. Last month, Sacks supported a bill that was passed in the US House that proposed crypto regulation.

“The crypto industry basically wants a really clear line for knowing when they’re a commodity and they want commodities to be governed, like all other commodities, by the CFTC,” he said.
He has also criticized the position taken by the Securities and Exchange Commission on crypto under chairman Gary Gensler.

“The days of Gensler terrifying crypto companies. Those days are about to be over,” he said.

Trump campaigned heavily on supporting crypto. Once he takes up the new position, crypto czar David Sacks is expected to spearhead crypto deregulation as promised by Trump during campaigns. The new role will give crypto advocates access to White House. It will also serve as an interface between the President, Congress and key federal agencies that regulate digital assets like the Commodity Futures Trading Commission and the Securities and Exchange Commission.

Trump’s move to prioritize the digital asset industry is clearly reflected in his cabinet appointees and close allies who include Howard Lutnick and Scott Bessent.

AI Regulation

Trump has expressed awe at the power of AI. He also has concerns regarding its potential harms. Sacks is expected to be at the forefront of advising the US government on AI adoption and regulatory matters. He will be helping Trump to leave an imprint on the emerging technology that has exploded in popularity in recent years.

Overall, the Trump administration is expected to overhaul the security and privacy safeguards introduced by the Biden administration in 2023 that his party considers a hindrance to AI innovation.