Elizabeth Warren Slams Trump's Crypto Advisor, David Sacks, Over Conflicts of Interest

Elizabeth Warren, a Democratic senator, wrote a letter to David Sacks, Trump's crypto advisor, raising questions about how fair the new crypto reserve would be

Elizabeth Warren, a Democratic senator, penned a letter to David Sacks, Trump’s crypto advisor, on Monday. In her letter, she raised questions about the fairness of the new crypto reserve, highlighting the five cryptocurrencies being touted alongside it.

The senator expressed concerns that the publicity of the new reserve may inadvertently boost prices for those already holding the token. This, she stated, would further concentrate wealth in the hands of billionaires and enrich insiders who had advance knowledge of the administration’s crypto policies.

Ranking member of the Senate’s Banking Committee, asked Sacks whether he disclosed any financial holdings with the Office of Government Ethics. She was keen to learn if he or members of his immediate family had any holdings in the cryptos included in the reserve or any other digital asset holdings.

“I write today to request information about how you, as President Trump’s ‘Crypto Czar,’ have addressed your conflicts of interest, and how you will prevent the President and other private individuals from directly profeming from the Trump Administration’s efforts to selectively pump the value of certain crypto assets, drop crypto asset-related enforcement actions, and deregulate the crypto asset industry”.

There is still a lot of ambiguity about the nature of a Bitcoin reserve. The reserve itself will only include Bitcoin, but there will exist a separate fund for other currencies. Bitcoin and other cryptocurrencies will be taken from seized assets held by federal authorities.

“These actions have the potential to benefit billionaire investors, Trump Administration insiders, and speculators at the expense of middle-class families”, wrote Warren in her letter to David Sacks.

“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”.

“Just last week, for example, the Securities and Exchange Commission (SEC), chaired by Mark Uyeda, who was chosen as Acting Chair by President Trump, issued a Staff Statement asserting that most meme coins are not securities and, thus, are not subject to federal securities safeguards”.

ranges of the new administrative priorities.

Sacks, who was appointed by Trump to advise him on crypto matters, has been working on a plan to create a strategic reserve fund for bitcoin and other digital assets. The administration is also considering a separate fund for coins that will be funded through the administrative seizure of illicitly obtained cryptocurrency.

The report of the new crypto fund comes amid a series of administrative actions to benefit the crypto industry. Earlier this year, the administration unveiled plans to impose a ban on stablecoin transactions with North Korea.

This move arose from the U.S.’s efforts to deter the involvement of cryptocurrency in facilitating illicit activity, such as the funding of terrorism.

Furthermore, the administration is preparing to launch a new task force focused on crypto theft.