Former U.S. President Donald Trump is preparing for his return to the White House by appointing David Sacks as a key advisor on artificial intelligence (AI) and cryptocurrency. Trump, who is expected to begin his second term on January 20, 2025, has signaled a shift in his approach to digital assets, moving from skepticism to advocacy.
In an announcement on his social media platform, Truth Social, Trump named Sacks as the ‘White House A.I. and Crypto Czar.’ Sacks, formerly a senior executive at PayPal, will be tasked with guiding policy in these two critical areas. This appointment aligns with a series of personnel announcements that have followed Trump’s victory over Kamala Harris in the recent presidential election.
Notably, Elon Musk, the CEO of Tesla and X (formerly Twitter), will co-lead a Department of Government Efficiency (DOGE). This organization aims to restructure federal agencies and reduce bureaucratic inefficiencies. Additionally, Trump nominated Paul Atkins as the next chairman of the Securities & Exchange Commission (SEC). Atkins, a former SEC commissioner and currently the chief executive of Patomak Global Partners, is expected to succeed Gary Gensler.
Sacks, according to his LinkedIn profile, served as chief operating officer and head of product at PayPal from 1999 to 2002. Since 2007, he has been a founder and partner at Craft Ventures, a venture capital firm. Trump stated that Sacks will focus on establishing the U.S. as the clear global leader in AI and crypto. Both fields present significant challenges for policymakers worldwide, who are grappling with the rapid pace of technological innovation and public adoption.
“He [Sacks] will safeguard Free Speech online, and steer us away from Big Tech bias and censorship,” Trump said in his social-media post. “He will work on a legal framework so the Crypto industry has the clarity it has been asking for, and can thrive in the US.”
Sacks will also lead the Presidential Council of Advisors for Science and Technology (PCAST). This body advises the president and the White House on science, technology, and innovation policy recommendations.
Regarding Atkins, Trump described him as a ‘proven leader for common sense regulations,’ adding that Atkins ‘believes in the promise of robust, innovative capital markets that are responsive to the needs of Investors, & that provide capital to make our Economy the best in the World.’
Trump is expected to introduce significant changes to the AI policies of the Biden administration. The Republican Party platform, entitled ‘Make America Great Again,’ pledges to rescind Biden’s Executive Order on AI, which was signed in October 2023.
“We will repeal Joe Biden’s dangerous Executive Order that hinders AI innovation, and imposes radical leftwing ideas on the development of this technology,” the manifesto states. “In its place, Republicans support AI development rooted in free speech and human flourishing.”
Biden’s Executive Order established safety and privacy standards for AI, warning against irresponsible use that could exacerbate societal harms. The order also highlighted the potential risks AI poses to workers, competition, and national security.
In the regulatory landscape, US government agencies are vying for influence over cryptocurrencies. In May, the House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21), aiming to provide consumer protections and foster innovation. Trump’s election, however, has created uncertainty with the challenge remaining to resolve disputes among agencies and clarify regulations.
Trump has expressed his intent to make the US the “crypto capital” and “Bitcoin superpower” of the world. Amidst expectations of lighter crypto regulation, the price of Bitcoin recently surpassed $100,000. The appointment of Atkins, who is viewed as “pro-crypto,” contrasts with the prevailing perception of Gensler as “anti-crypto.”
The European Union’s Markets in Cryptoassets Regulation (MiCAR) took effect in June 2023 and becomes fully applicable on December 30, 2024.
DOGE, the Department of Government Efficiency, described as being ‘outside government’, will be co-led by Musk and Vivek Ramaswamy, a biotech entrepreneur who ran for the Republican nomination. The initiative’s goal is to streamline government operations, cut excess regulations, and restructure federal agencies. Trump referred to DOGE as “the Manhattan Project of our time” – a comparison to the program that developed the first atomic bomb. Musk has claimed that the federal budget could be reduced by as much as $2 trillion by cutting wasteful spending. Trump has indicated that Musk and Ramaswamy will complete their work by July 4, 2026.
