President Trump’s announcement on Sunday to plan to establish a Federal Cryptocurrency Reserve sent digital asset markets. However, he also revived concerns about possible conflicts of interest, this time involving David Sacks, the risk capitalist who works as Trump’s cryptographic and artificial intelligence tsar.
The president said on Sunday that a future Cryptography reserve of the United States will maintain chips, including XRP, Sun, ADA, ETH and BTC. Ada shot at 60% a few minutes away from the announcement, and all other listed tokens experienced two digit price potholes.
The market response immediately caught attention to the variety of ways in which Trump and his intimate circle could benefit from his cryptographic policies.
Among the most obvious potential beneficiaries were Sacks, whose risk company, Craft Ventures, is Inverted in bitwise—A administrator of encryption index funds with holdings in all digital tokens appointed in Trump’s statement, and other new cryptography companies. In the past, Sacks also revealed personal investments in some of the tokens listed by the president.
After Sunday’s announcement, Sacks declared in X: “I sold all my cryptocurrencies (including BTC, Eth and Sun) before the start of the administration.” In response to a community note on the investment of handicraft companies in craft companies in Bit A Bits, “I had a $ 74K position in the ETF of $ 74K, which I sold on January 22.
It is not clear if Sacks retains direct participation in artisanal companies, where he is still a partner. Sacks led the 2017 Craft Ventures seed investment in Bitwise, and the risk company still lists Bitwise in its portfolio.
A representative of the artisanal companies refused to share anything beyond the X Publications of Sacks. The firm told the Financial Times on Sunday that it still has bets in some cryptocurrency companies.
Bitwise operates a series of funds quoted in exchange (ETF), including a “cryptocurrency index fund” that contains all the tokens scheduled for the Trump reserve. The firm has also submitted applications to operate ETF for XRP and Sol, among other tokens. If these requests are approved, Bitwise would benefit from a high interest in assets if included in a US cryptography reserve. UU.
Bitwise did not respond to a request for comments.
Sacks will organize a Cryptocurrency Summit of the White House in its type of its Friday, during which more details are expected to arise on the administration plans for the industry.
Trump has worked hard during the last year for court supporters in the cryptocurrency industry, one of the largest corporate donors groups for the 2024 elections. While some in the industry have received the president’s antiregulatory position, even some of their pro-Crypto supporters have begun to fear that highlighting particularly volatile assets such as Cardano (ADA) They risk delegating the sector.
The president’s own cryptocurrency companies have added concerns about possible conflicts of interest.
In January, Trump launched a meme coin, Trump, in the Solana Blockchain, the network behind the Token Sol. Meanwhile, World Liberty Financial (WLFI), a decentralized financial company backed by the president and their children, has built its own Crypto assets. The treasure includes some of the same tokens that appear for inclusion in the Federal Crypto Reserve, which means that any impulse in the price could apparently benefit Trump directly.
