tl;dr
Democratic lawmakers launched an investigation into David Sacks, President Trump's "crypto and AI czar," over allegations he exceeded the 130-day limit for his temporary White House role as a Special Government Employee (SGE). The Office of Government Ethics (OGE) restricts SGE tenure to prevent con...
**Ethics Concerns Over Trump’s Crypto Czar Spark Congressional Inquiry**
Democratic lawmakers have launched a pointed investigation into David Sacks, President Donald Trump’s so-called “crypto and AI czar,” over claims he may have violated ethics rules by exceeding the time limit for his temporary White House role. The scrutiny highlights the tension between rapid policymaking and safeguards designed to prevent conflicts of interest.
Sacks, a venture capitalist and partner at Craft Ventures, was appointed as a Special Government Employee (SGE), a role allowing private-sector professionals to serve the government on a part-time or temporary basis. The Office of Government Ethics (OGE) caps SGE tenure at 130 days to mitigate risks of conflicts of interest, as these appointees can retain their private-sector salaries. But lawmakers argue Sacks may have crossed that threshold, raising questions about his compliance with ethical standards.
In a letter dated Sept. 17, signed by Senator Elizabeth Warren and seven other lawmakers, the group stated Sacks’ appointment—officially dated December 2024—began around Trump’s inauguration on Jan. 20, 2025. By their calculation, he reached the 130-day limit by late May (if counting every calendar day) or late July (if considering only business days). As of Sept. 17, the lawmakers noted, Sacks had served 167 days, exceeding the cap.
The letter emphasized that Sacks’ dual roles as a venture capitalist and government advisor create “serious ethical questions.” It cited the White House’s own acknowledgment that SGEs must serve “on a temporary basis,” warning that Sacks’ extended tenure could violate conflict-of-interest rules. “Compliance with the SGE time limit is critical, given the scale of your conflicts of interest,” the lawmakers wrote, pointing to his financial ties to Silicon Valley.
Sacks’ role in shaping Trump’s policies on cryptocurrency and artificial intelligence made him a high-profile figure. His work included advocating for regulatory frameworks that favored crypto innovation, a stance that drew praise from industry allies and criticism from watchdogs. The lawmakers’ inquiry now hinges on whether his extended service—potentially over four months beyond the limit—breaches ethical guidelines.
The letter, co-signed by Sens. Chris Van Hollen, Richard Blumenthal, and Jeffrey Merkley, as well as Reps. Melanie Stansbury, Betty McCollum, Rashida Tlaib, and Bernie Sanders, demands a full accounting of Sacks’ service record and clarification of his employment status. The White House and Sacks have yet to respond publicly.
The situation underscores the precarious balance between leveraging private-sector expertise and maintaining transparency in government. As the debate unfolds, it raises broader questions: How can policymakers navigate fast-moving fields like crypto without compromising ethical standards? And what does this episode reveal about the rules governing temporary government roles?
For now, the answer remains unclear—leaving Sacks’ position and the integrity of Trump’s crypto policies hanging in the balance.