Congressional Democrats Probe Trump Crypto Advisor David Sacks Over Potential SGE Rule Violation

Senators Elizabeth Warren and Representative Melanie Stansbury are leading a group of congressional Democrats in a probe of White House Special Advisor David Sacks. The inquiry centers on whether Sacks, a former PayPal executive and venture‑capitalist at Craft Ventures who was appointed by President Donald Trump as the administration’s AI and crypto czar, has exceeded the 130‑day limit for Special Government Employees. The lawmakers have asked Sacks to detail his work schedule and communications, citing possible ethics concerns and conflicts of interest given his ties to the crypto industry and prominent Trump allies.

Background and Appointment

David Sacks, a former PayPal executive and partner at the venture‑capital firm Craft Ventures, was selected by President Donald Trump in 2024 to serve as the White House "AI & Crypto Czar." The role places him at the intersection of two fast‑growing sectors, providing policy guidance and helping implement new cryptocurrency legislation.

Congressional Inquiry

Senator Elizabeth Warren (D‑MA) and Representative Melanie Stansbury (D‑N.M.) are spearheading a coalition of Democratic lawmakers that has sent a formal letter to Sacks. The letter raises concerns that Sacks may have remained in his advisory position beyond the statutory 130‑day limit that applies to Special Government Employees (SGEs). The lawmakers calculate that, if Sacks worked every calendar day, his 130th day would have fallen on May 29, 2025; if counted by business days, the 130th day would have been July 25, 2025. At the time of the letter, the administration was on its 167th business day, suggesting a possible overstay.

Requested Information

The congressional group is asking Sacks to provide a detailed account of his work schedule, including whether he answers government emails while based in Silicon Valley. They also seek clarification on any ongoing ties to Craft Ventures or undisclosed crypto investments that could create a conflict of interest.

Potential Conflict of Interest

Lawmakers note that Sacks is known to be friendly with the Trump campaign and allies such as Elon Musk. His background as an investor in both AI and crypto markets raises questions about whether he stands to benefit personally from policy decisions he helps shape. The investigation emphasizes that any continued service without proper disclosure or separation from his private‑sector roles could violate ethics rules.

Regulatory Context

The Trump administration has taken a notably supportive stance toward the crypto industry. President Trump issued an executive order calling for the creation of a federal Bitcoin stockpile and signed the GENIUS Act into law in July, which establishes a regulatory framework for stablecoins—cryptocurrencies typically pegged to the U.S. dollar. These actions have intensified scrutiny of how advisory appointments intersect with industry interests.

Implications and Outlook

If the investigation finds that Sacks exceeded the SGE limit or failed to disclose relevant financial interests, it could prompt further congressional action, including potential ethics reviews or calls for his resignation. The probe also underscores broader concerns about the revolving‑door dynamic between government officials and the rapidly evolving crypto and AI sectors.