David Sacks Rebuts NYT Over Retained Crypto Stakes While Serving as White House Adviser

David Sacks, recently appointed White House special adviser on AI and cryptocurrency, has publicly disputed a New York Times report alleging conflicts of interest tied to retained investments. Sacks and his firm Craft Ventures say they divested more than $200 million in liquid crypto-related assets and stocks before his appointment — Sacks sold at least $85 million personally — and assert full compliance with Office of Government Ethics rules and waiver processes. The NYT, however, reports Sacks still holds about 20 crypto-related private investments and hundreds of tech and AI positions (including 449 AI-focused), and highlights Craft Ventures’ reported 7.8% stake in custody provider BitGo as a potential beneficiary of clearer stablecoin regulation and other policy moves such as the GENIUS Act. Lawmakers have raised questions about his special government employee status and the 130-day cap on outside work. Sacks’ team called the NYT piece a “hit job” and warned of legal action. For crypto traders, the episode is primarily about regulatory credibility and political scrutiny rather than changes to specific tokens or protocols. Key trading implications: (1) the likelihood of immediate policy-driven market moves is reduced if divestments are accurate; (2) clearer stablecoin regulation or institutional custody-friendly rules would be bullish for custody providers and infrastructure firms (and could indirectly support stablecoin-linked liquidity); (3) ethics controversies can create short-term uncertainty and sentiment-driven volatility until follow-up reporting, congressional inquiries, or formal ethics reviews clarify the situation. Monitor further reporting, any formal investigations, and legislative momentum on stablecoin regulation for market-moving developments.