David Sacks Exits White House Crypto Role as Key Legislation Remains Pending

David Sacks has stepped down from his position as the White House’s AI and crypto lead, bringing to an end a relatively short term that nonetheless influenced how the U.S. government approaches digital assets. However, several key policy and legislative initiatives remain unresolved.

Exit Triggered by 130-Day Government Service Limit

In remarks to Bloomberg on Thursday, Sacks explained that his role as a special government employee concluded after reaching the 130-day service cap. Despite stepping down, he will continue contributing to the administration in a different capacity.

Sacks will now serve as co-chair of the President’s Council of Advisors on Science and Technology (PCAST), where his focus will expand beyond crypto and artificial intelligence to include a wider range of tech policy issues.

Key Role in Shaping U.S. Crypto Policy Direction

During his time in the White House, Sacks was instrumental in guiding the administration’s digital asset strategy. His efforts included advocating for market structure reforms, promoting stablecoin legislation, and supporting the idea of a U.S. strategic Bitcoin reserve.

He also consistently called for clearer regulatory frameworks, while criticizing the previous Biden-era approach as overly dependent on enforcement measures.

Legislative Progress Slows Amid Political Resistance

Despite early optimism, several major reforms remain incomplete. Sacks had previously indicated that market structure and stablecoin bills could pass within the administration’s first 100 days, but progress has stalled as Congress continues to deliberate the CLARITY Act beyond that timeframe.

Abandoned Plan for Permanent White House Crypto Council

An initial proposal to establish a permanent White House “crypto council” composed of industry leaders was ultimately dropped. Instead, the administration opted for occasional summits and an internal working group on digital assets, following internal disagreements within the industry.

Sacks also participated in early discussions regarding a national digital asset stockpile and a strategic Bitcoin reserve, part of a broader ambition to position the U.S. as a global hub for crypto.

However, these plans have yet to fully take shape. While the reserve is expected to be funded through Bitcoin seized by the government, uncertainty remains about whether additional acquisitions will occur and how they would be financed.

Conflict-of-Interest Measures and Industry Criticism

Before assuming his role, Sacks stated that he had liquidated his personal crypto holdings to avoid potential conflicts of interest. He continued to push for clearer regulatory guidelines throughout his tenure.

At the same time, he dismissed concerns raised by Democratic lawmakers and industry figures regarding former President Donald Trump’s connections to World Liberty Financial, a DeFi company largely owned by Trump’s sons.

U.S. Crypto Regulation Still a Work in Progress

Sacks’ departure leaves the administration’s crypto policy efforts ongoing. Lawmakers are still debating key issues such as regulatory oversight, the division of authority among agencies, and the governance of stablecoins.

Continued Focus on AI and Technology Strategy

Looking ahead, Sacks confirmed that he will remain engaged in shaping artificial intelligence policy and broader technology strategy through his new advisory role.

"As co-chair of PCAST, I’ll be able to provide recommendations not only on AI but across a wider spectrum of technology topics,” he said. "That’s how I plan to stay involved going forward".