A group of congressional Democrats, led by Senator Elizabeth Warren, has launched an investigation into David Sacks, a key White House advisor on cryptocurrency and artificial intelligence. The inquiry centers on whether Sacks has exceeded the legal time limit for his role as a Special Government Employee (SGE), raising concerns about potential conflicts of interest.
Key Takeaways
- Congressional Democrats are investigating if White House advisor David Sacks violated the 130-day service limit for Special Government Employees (SGEs).
- The investigation is led by Senator Elizabeth Warren and Representative Melanie Stansbury.
- Concerns focus on potential conflicts of interest, as Sacks is a venture capitalist at Craft Ventures with investments in the crypto and AI sectors he advises on.
- The inquiry seeks detailed records of Sacks' work schedule to determine if he has overstayed the period where ethics rules are partially waived.
Inquiry Launched into Advisor's Tenure
Senator Elizabeth Warren (D-MA) and Representative Melanie Stansbury (D-N.M.) are spearheading the investigation. They sent a formal letter to David Sacks, who was appointed by President Donald Trump in 2024 to serve as the "White House A.I. & Crypto Czar," demanding clarification on his employment status.
The letter questions whether Sacks has continued to serve in his advisory capacity beyond the federally mandated 130-day limit for SGEs. This special designation is designed for temporary experts from the private sector to assist the government.
What is a Special Government Employee?
A Special Government Employee (SGE) is an individual hired to provide temporary service to the government for not more than 130 days during any period of 365 consecutive days. This status allows individuals with private-sector expertise to advise federal agencies without being subject to the full scope of conflict-of-interest laws that apply to permanent employees. The time limit is a critical part of this arrangement.
Calculating the Service Days
The lawmakers' letter outlines specific timelines that suggest Sacks may have already surpassed his service limit. They argue that the 130-day mark has likely passed, regardless of how his workdays are calculated.
"Any effort to stay beyond the time limits imposed on you as a Special Government Employee (SGE) would raise additional ethics concerns for you and the Trump Administration," the letter stated.
The Democrats provided calculations to support their claim. They noted that if Sacks worked every calendar day since the inauguration, his 130th day would have been May 29, 2025. If he only worked business days, the limit would have been reached on July 25, 2025.
Timeline in Question
- May 29, 2025: 130th calendar day of the administration.
- July 25, 2025: 130th business day of the administration.
- September 17, 2025: Date of the letter, noted as the 167th business day of the administration.
As part of the investigation, the lawmakers have requested a detailed log of Sacks' work activities. This includes information on when he performs his advisory duties and whether he engages in government communications, such as answering emails, while conducting his private business in Silicon Valley.
Conflict of Interest at the Forefront
The core of the issue revolves around potential conflicts of interest. David Sacks is a prominent venture capitalist and a partner at Craft Ventures, a firm with significant investments in the technology sectors he advises the White House on. His relationships with figures like Elon Musk and his deep ties to the Trump campaign were factors in his appointment.
The SGE designation's 130-day limit is specifically designed to mitigate such conflicts. By remaining within this timeframe, advisors can offer their expertise without divesting from their private-sector interests. Exceeding this limit without becoming a full-time employee who must follow stricter ethics rules is a primary concern for the investigators.
The letter highlighted these concerns, stating that Sacks' continued service is particularly problematic as the administration works to implement new cryptocurrency laws and establish regulations for the industry.
Influence on Crypto and AI Policy
The Trump administration has adopted a more favorable stance toward the cryptocurrency industry, a shift some attribute to the influence of advisors like Sacks. Several key policy moves have been made during his tenure.
In July, President Trump signed the GENIUS Act into law. This legislation created a regulatory framework for stablecoins, which are digital currencies pegged to assets like the U.S. dollar. The administration also issued an executive order directing the creation of a federal Bitcoin stockpile.
Lawmakers argue that if Sacks is advising on these policies while maintaining his role at Craft Ventures and his personal investments, it creates an appearance of impropriety. They are concerned that he could personally benefit from the regulations he helps shape.
The investigation aims to verify whether government norms have been breached and to ensure that clear ethical lines are maintained between private interests and public service, especially in rapidly evolving sectors like crypto and AI.