Source: www.govinfosecurity.com – Author:
Artificial Intelligence & Machine Learning , Big Data Security Analytics , Blockchain & Cryptocurrency
David Sacks Appointed as Trump’s AI and Crypto Czar Amid Growing Industry Concerns Chris Riotta (@chrisriotta) • December 6, 2024
U.S. President-elect Donald Trump’s appointment of David Sacks, a former PayPal executive and close ally of Elon Musk, as White House czar for artificial intelligence and cryptocurrency likely heralds an administration shift toward a more industry heavyweight-friendly regulatory landscape.
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AI and cryptocurrency leaders, including Gemini cofounder Tyler Winklevoss and OpenAI CEO Sam Altman, celebrated Trump’s announcement on Thursday night, with Winklevoss calling Sacks an “excellent choice” and Altman congratulating the Silicon Valley heavyweight on X. Altman, who recently criticized Musk for potentially influencing Trump to harm rivals while benefiting his own businesses, quickly faced a trolling response from Musk, who replied with a laughing-crying emoji.
The seemingly minor social media exchange between the two tech titans may signal a turbulent next chapter for AI and cryptocurrency policy, experts told Information Security Media Group. Sacks is expected to craft a new regulatory framework for both sectors with minimal restrictions, potentially reshaping market dynamics. While the inaugural White House role could unify fragmented federal efforts, champion ethical standards and establish a balanced regulatory framework, it may also introduce biases that favor certain large corporations over small businesses, warns Alon Yamin, co-founder and CEO of the AI platform Copyleaks.
Yamin told Information Security Media Group that assessing Sacks’ motivations and potential biases will be critical, adding: “The success of this initiative will depend on the strength and fairness of the regulations – or lack thereof – implemented by the federal government.”
Sacks, a 52-year-old South African-born Stanford graduate, podcaster and venture capitalist, was a key Trump supporter in Silicon Valley during the 2024 campaign. He previously served as an executive at PayPal alongside Musk and is not expected to step down from his venture capital firm, Craft Ventures – which has invested in several of Musk’s businesses.
Trump’s embrace of crypto during the campaign raised concerns that “blockchain billionaires” could gain direct influence over his administration, with experts pointing to his own crypto venture, World Liberty Financial, which licensed his name for billions in tokens and a share of the profits. Weeks after his election victory, Trump’s crypto venture secured a $30 million investment from Tron blockchain founder Justin Sun, pushing the project’s token value past the threshold to funnel 75% of revenues to his LLC.
“I’m not sure why we need a czar other than to excite and reward cryptocurrency proponents,” Roger Grimes, a data defense expert at KnowBe4, said at the time (see: Trump’s Crypto Plans Raise Alarms Over Conflicts of Interest).
Sacks is far from the only crypto enthusiast in Trump’s orbit with potential conflicts of interest. The president-elect recently said he will nominate billionaire Wall Street CEO Howard Lutnick, a major backer of the crypto firm Tether, to serve as his secretary of commerce. He also said he will nominate crypto advocate Paul Atkins to run the Securities and Exchange Commission, in part triggering Bitcoin to surge to an all-time high on Thursday above $100,000.
Multiple experts and former federal officials, speaking anonymously to voice concerns, expressed doubt over Sacks’ ability to separate his investments and potential conflicts while shaping new regulatory frameworks for both industries. Some noted how he launched his own AI chat platform dubbed Glue in May, and has strongly indicated he has no plans to step away from his business ventures while advising the president.
In a post on X late Thursday night, Sacks said he looks forward “to advancing American competitiveness in these critical technologies.”
“Thank you, Mr. President. I am honored and grateful for the trust you have placed in me,” Sacks wrote. “Under your leadership, the future is bright!”
Craft Ventures did not immediately respond to a request for comment. The Trump transition team did not return multiple requests for comment. Musk’s social media platform X also did not return a request for comment.
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