Key Points
- Senator Elizabeth Warren sent a letter to David Sacks, questioning his ties to crypto firm Bitwise ahead of the Digital Assets Summit.
- Warren expressed concerns over potential conflicts of interest and the potential benefits to existing cryptocurrency holders due to the government’s increasing involvement in blockchain.
Senator Elizabeth Warren has addressed a letter to David Sacks, raising questions about his affiliations with the cryptocurrency company Bitwise. This comes as the White House’s first Digital Assets Summit is imminent.
Warren’s Concerns
In her correspondence, Warren expressed concerns about the likelihood of conflicts of interest arising from the federal government’s escalating involvement in blockchain technology. She specifically questioned Sacks about his ties to the crypto industry, focusing on his previous associations with crypto businesses.
Warren stated, “The planned Crypto Strategic Reserve is just the most recent example of a Trump Administration crypto policy with the potential to benefit a wealthy, well-connected few at the expense of taxpayers.”
Sacks’ Past Associations
Sacks, a special government employee, is not subject to certain ethical rules, including financial disclosure ones. His past role at Craft Ventures, which supported crypto firms such as Fold, Lightning Labs, and Bitwise, has been scrutinized. Warren highlighted that Bitwise’s top five holdings coincide with the five tokens mentioned in President Trump’s recent announcement of a strategic crypto reserve.
In addition, Warren is seeking clarification on whether Sacks or anyone involved in the reserve policy executed trades related to the assets before the announcement. She stated, “Despite your public statements via X, it remains unclear exactly when you personally divested from BTC, ETH, and SOL, when Craft Ventures divested from Bitwise, and whether people close to you ‘may have held positions and sold into the recent price surge.’”
Warren also stressed that the stance of the U.S. Securities and Exchange Commission should protect companies and individuals that create memecoins from potential litigation. This could directly benefit President Trump’s coin ventures, such as Official Trump (TRUMP) and MELANIA (MELANIA).
The White House Crypto Summit is expected to occur from 1:30 p.m. to 5:30 p.m. ET on Friday, March 7.
Strategic Bitcoin Reserve
U.S. President Donald Trump has signed an executive order to establish a Strategic Bitcoin Reserve. This reserve will be funded with Bitcoin (BTC) seized by the federal government through asset forfeiture, meaning that taxpayers will not bear any costs.
According to Sacks, the U.S. government currently holds about 200,000 BTC, though a full audit has not yet been conducted. The executive order mandates a complete accounting of federal digital asset holdings and prohibits the sale of Bitcoin in the reserve, likening it to a “digital Fort Knox.”