The Cryptocurrency Tycoon in the White House Reacts Strongly to Major Banks

David Sacks, a venture capitalist and “King of Cryptocurrency and AI” in the United States, is criticizing major banks and investment platforms for what he describes as a persistent form of “banking disruption” against Bitcoin exchange-traded funds. On August 8, Sacks questioned whether the current restrictions were the “final traces of the abolishment of banking services,” referring to the cutting off or limiting access to cryptocurrency-related services.

Data from Tephra Digital shows that over 31 trillion dollars of capital from asset management platforms in the United States remains restricted or prohibited from investing in Bitcoin ETF funds. This total includes 10.3 trillion dollars that are completely banned and 20.8 trillion dollars that are restricted by factors such as account type, investment limits, or net worth requirements.

Platforms such as Vanguard, Edward Jones, AllianceBernstein, Citi, Ameriprise, and T. Rowe Price completely prohibit access to Bitcoin ETFs. Meanwhile, Morgan Stanley, JPMorgan, Goldman Sachs, Wells Fargo, UBS, Raymond James, and other platforms only allow restricted access, usually reserved for high net worth clients or through specific account types. Only $19.1 trillion in assets on the platform - about 38% of the total tracked - is in the “unrestricted” category, with Charles Schwab, Fidelity, and Mariner among the companies providing full access. Sacks noted: “Access to Bitcoin ETF on top asset management platforms in the United States, with $31 trillion still restricted or prohibited.” Some banks have made small steps towards integration. State Street and Charles Schwab have announced trading access, but custody services remain limited and many banks continue to impose barriers. According to a report by Tephra Digital, a private analysis of the top 25 banks in the United States shows a “slow pace” in integrating Bitcoin products. Sacks’ comments came just one day after President Donald Trump signed an executive order targeting what his administration calls the ideological capture of participants in the cryptocurrency industry. This order removes “reputational risk” from the valid reasons for banks to terminate customer relationships — a phrase that critics allege has been used to blacklist cryptocurrency companies in what some in the industry call “Operation Choke Point 2.0.”