Silicon Valley entrepreneur David Sacks to oversee AI and cryptocurrencies in the Trump administration

In December 2024, the next U.S. President Trump announced the appointment of Silicon Valley heavyweight David O. Sacks as the White House Chief of AI and Cryptocurrency Affairs. This personnel change has garnered significant attention from the tech industry and the crypto community. Sacks’ entrepreneurial achievements and deep involvement in the cryptocurrency industry led to his appointment to this important position.

A Brilliant Track Record in Silicon Valley for Over a Quarter Century

David O. Sacks’s background embodies the American Dream. Over the past 25 years, he has founded and invested in some of Silicon Valley’s most iconic companies, establishing himself as an outstanding entrepreneur and investor.

His career began at PayPal. As COO during PayPal’s early days, he demonstrated his capabilities and later became part of the legendary “PayPal Mafia.” Alumni from PayPal have gone on to significantly influence the development of Silicon Valley.

After PayPal, Sacks founded enterprise software company Yammer, which was later sold to Microsoft for $1.2 billion. Subsequently, he established venture capital firm Craft Ventures in San Francisco, focusing on investments in the B2B software sector.

Craft Ventures has seen remarkable growth. Its first fund raised $350 million, and by October 2019, the second fund secured commitments of $500 million. By November 2023, the firm had raised $1.3 billion through its fourth fund and growth funds.

Currently, Sacks is also active as a co-host of the influential tech podcast “All-In Podcast,” engaging in deep discussions on economics, politics, and social issues. The Trump administration judged that Sacks’s extensive business experience and industry insights make him well-suited to promote policies in AI and cryptocurrency.

Steadfast Belief in Cryptocurrency Since 2017

David Sacks’s interest in cryptocurrencies is not recent. Rather, he has understood the essence and potential of digital assets since the early days of the industry.

In 2017, Sacks made a significant statement in an interview with CNBC, reflecting on PayPal’s initial vision. At its founding, PayPal aimed to create a “new global currency.” However, at that time, technical limitations prevented this goal from being realized.

Later, with the advent of Bitcoin and cryptocurrencies, the dream of PayPal began to take new form. Sacks recognized that Bitcoin was building a decentralized network often called the “Internet of Money.” He understood that this was an innovation in cryptocurrencies—achieving what PayPal aimed for in a centralized way, but through blockchain technology and cryptoeconomics in a decentralized manner.

In that interview, Sacks said, “I feel like I am witnessing the birth of a new kind of network that combines cryptography and economic incentives.” He also analyzed three major challenges facing cryptocurrencies—scalability, shallow implementation stages, and regulation—coldly. At the same time, he pointed out promising use cases such as store of value, payments, crowdfunding, and ID management.

From that time, his interest also extended to ICOs and securities regulation. Sacks expressed hope that the SEC would be able to distinguish between “protocol coins” (which are essential for blockchain implementation and should not be considered securities) and “asset coins” (traditional asset tokens).

Strategic Deployment of Cryptocurrency Investments via Craft Ventures

Craft Ventures’s investment portfolio includes major U.S. tech giants like Airbnb, Meta, Reddit, and Slack. At the same time, Sacks has actively engaged in investments in the crypto space.

In 2018, Sacks joined the advisory board of decentralized exchange protocol 0x. That same year, he partnered with digital securities platform Harbor, which aimed to leverage blockchain technology for compliant fundraising and increased asset liquidity. Harbor was later acquired by asset management firm BitGo, inheriting its technological foundation.

Similarly, in DeFi, he led seed funding rounds for Set Protocol and announced investments in crypto venture capital firm Multicoin. He also promoted indirect investments in next-generation blockchain projects like Solana. In 2024, he co-invested with Multicoin in the blockchain-based mapping network Hivemapper and invested in Web3-enabled entertainment companies.

Long-term Investment Perspective on Solana Reveals Sacks’s Market Insight

One of Sacks’s most notable decisions in crypto investing is his support for Solana. Through his relationship with Multicoin, he has supported Solana from its early stages. When Multicoin led a $20 million funding round for Solana in July 2019, Sacks’s strategic backing was a key factor.

Interestingly, even during the sector-wide turmoil following the FTX collapse in 2023, Sacks did not sell his Solana holdings. In a subsequent statement, he said, “Criticism that I sold Solana tokens is one of the stupidest attacks I received this year.” This reflects his consistent investment philosophy.

In discussions on the All-In Podcast, Sacks has expressed a positive outlook on Solana’s long-term prospects. Many Silicon Valley elites have high expectations for Solana, with some even suggesting it could surpass Ethereum. Even if that vision is not fully realized, he believes Solana has enough potential to rank as the third-largest cryptocurrency industry player.

Political Activities and Industry Influence

Sacks’s influence extends beyond business. According to Bloomberg, he has been a significant supporter of Trump’s fundraising efforts among tech industry donors. He also maintains close ties with political figures like JD Vance, the upcoming Vice President.

He has continued his relationship with Elon Musk, a former PayPal colleague. In April 2024, they co-hosted a billionaire dinner themed around anti-Biden sentiments, demonstrating cooperation in both politics and business.

The appointment of David O. Sacks to the Trump administration symbolizes the practical leadership of Silicon Valley moving into policy decision-making. AI and cryptocurrencies are among the most critical fields shaping the next-generation digital economy. His entrepreneurial spirit and deep market understanding are drawing industry attention to how they can enhance America’s competitiveness in these sectors.