Democrats probe Sacks' crypto-AI influence amid ethics clash over term limits

Elizabeth Warren and a coalition of Democratic lawmakers have launched an investigation into potential ethics violations by David Sacks, President Donald Trump’s Special Advisor for AI and Crypto, focusing on his alleged overstay of the 130-day term limit for Special Government Employees (SGEs). The lawmakers, including Senators Richard Blumenthal, Bernie Sanders, and Representatives Betty McCollum and Rashida Tlaib, argue that Sacks’ continued involvement in shaping crypto and AI policy while maintaining significant financial ties to the industries he oversees raises serious conflict-of-interest concerns. Sacks, a venture capitalist and founder of Craft Ventures, was granted ethics waivers by the Trump administration to retain investments in crypto and AI companies despite the restrictions typically imposed on SGEs.

The 130-day limit for SGEs is a key provision of federal ethics rules, designed to prevent private-sector officials from holding prolonged government roles that could facilitate conflicts of interest. Sacks, appointed in December 2024 and beginning his duties on January 20, 2025, faces scrutiny over whether he has exceeded this cap. The lawmakers calculated that if Sacks worked every business day since the presidential inauguration, his 130th day would have been reached by late July 2025. Sacks’ office has claimed he manages his SGE days non-consecutively to remain compliant, but the lawmakers note the lack of transparency in tracking his work schedule. The investigation also highlights Sacks’ dual role as a General Partner at Craft Ventures, which holds stakes in numerous crypto and AI startups, potentially allowing him to influence policies that directly impact his investments.

The lawmakers’ letter emphasizes the broader implications of Sacks’ potential overstay, particularly as the Trump administration moves to implement new crypto legislation and regulatory frameworks. They reference the Sacks’ recent advocacy for a U.S. Strategic Bitcoin Reserve, a policy that could disproportionately benefit his affiliated ventures. The lawmakers’ inquiry is tied to their previously introduced SGE Ethics Enforcement & Reform (SEER) Act, which would mandate Office of Government Ethics (OGE) approval for SGE ethics waivers, enforce stricter recusal rules for Sacks, and make his financial disclosures public. The bill also seeks to restrict Sacks’ communication with agencies regulating Craft Ventures, further underscoring concerns about his influence over policy outcomes.

Sacks has defended his actions, stating he divested $200 million in crypto-related assets before assuming his role, including Bitcoin, Ethereum, and Solana, to avoid conflicts of interest. However, the lawmakers note that Sacks remains deeply invested in crypto and AI through Craft Ventures, which continues to hold stakes in firms aligned with his policy priorities. A spokesperson for Sacks reiterated his commitment to adhering to SGE rules, but critics argue that the Trump administration’s repeated ethics waivers undermine the integrity of the SGE designation. The investigation also scrutinizes Sacks’ prior role in hosting a Trump fundraiser that raised $12 million, further fueling allegations of partisan bias in his advisory role.

The probe reflects a broader pattern of scrutiny over Trump’s administration’s handling of ethics in high-level appointments. Sacks’ case is emblematic of the administration’s reliance on private-sector figures with vested interests in the industries they regulate. The lawmakers’ focus on the 130-day limit underscores the tension between Sacks’ temporary SGE status and his prolonged influence over policy, with the potential for regulatory decisions to directly benefit his financial holdings. As the investigation proceeds, the outcome could set a precedent for how SGE ethics rules are enforced in future administrations.

Source: [1] U.S. Senator Elizabeth Warren | Warren, Stansbury, Member... (https://www.warren.senate.gov/newsroom/press-releases/warren-stansbury-members-of-congress-launch-investigation-into-trump-crypto-and-ai-czars-ethics-conflicts) [2] Elizabeth Warren Wants To Probe Trump's Crypto Czar And How … (https://www.benzinga.com/crypto/cryptocurrency/25/09/47837070/elizabeth-warren-wants-to-probe-trumps-crypto-czar-and-how-david-sacks-is-overstaying-his-130-day-term-limit-another-example-of-corruption) [3] Democrats launch ethics investigation into AI and … (https://www.nextgov.com/people/2025/09/democrats-launch-ethics-investigation-ai-and-crypto-czar-david-sacks/408175/) [4] Sen. Warren presses Trump AI czar David Sacks on overstaying … (https://www.cnbc.com/2025/09/17/sen-warren-presses-trump-ai-czar-david-sacks-on-overstaying-job.html?msockid=1d0a8a2c744b6f38071b9c5d75886e82) [5] Crypto Tsar David Sacks Claims He Has Not Exceeded … (https://cointelegraph.com/news/donald-trump-crypto-tsar-david-sacks-elizabeth-warren-scrutiny) [6] David Sacks sold $200 million in crypto holdings before taking (https://www.cnbc.com/2025/03/14/david-sacks-sold-200-million-in-crypto-holdings-before-taking-wh-job.html?msockid=0a3b6c5b356f6a9227617a2a34706b49) [7] David Sacks Clarifies Crypto Sale, Says He Divested—Not Dumped (https://www.cryptotimes.io/2025/03/19/david-sacks-clarifies-crypto-sale-says-he-divested-not-dumped/) [8] David Sacks Sold His Crypto Holdings Before Trump … (https://cryptonews.com/news/david-sacks-sold-his-crypto-holdings-before-trump-took-office/)