- Sacks’ departure was driven by his refusal to fully divest from Craft Ventures, a $3B portfolio firm that conflicted with full-time government service.
- Michael Kratsios takes over as the administration’s primary tech leader, with responsibilities previously held by Sacks now split across multiple officials.
- Despite leaving the operational role, Sacks retains influence through his PCAST co-chair position alongside a roster of top tech industry leaders.
David Sacks, the prominent Silicon Valley venture capitalist who served as the Trump administration’s AI and Crypto Czar, has officially announced the end of his White House role.
The announcement comes just one day after being named co-chair of the newly restructured President’s Council of Advisors on Science and Technology (PCAST), as reported by the White House on March 25, 2026.
The PayPal co-founder and Craft Ventures managing partner occupied one of the most influential positions in shaping U.S. technology policy over the past year. His departure marks a significant shift in the administration’s approach to digital asset and artificial intelligence governance, raising questions about the future direction of federal crypto and AI policies under the Trump administration.
Why Did David Sacks Leave His Crypto Czar Position?
According to CryptoRank, Sacks’ reduced role stemmed primarily from his refusal to fully divest from his investment firm, Craft Ventures, which manages a portfolio valued at approximately $3 billion. Sources close to the administration indicated that “they realized they needed someone who could run operations full-time,” while another insider noted that “not divesting makes this messy—even in an administration that treats conflicts of interest casually, this became a problem.”
As reported by Bloomberg, Sacks was originally appointed in December 2024 to serve as the administration’s top advisor on artificial intelligence and cryptocurrency policy. His role was designated as a “special government employee,” which allowed him to continue managing Craft Ventures while advising the administration—a status that drew persistent scrutiny from legislators including Senator Elizabeth Warren, who questioned whether Sacks had exceeded the time limit for his temporary government role.
Michael Kratsios, who served as Chief Technology Officer during Trump’s first administration, has now assumed primary leadership of the administration’s technology efforts. Meanwhile, Gale Slater will focus on telecommunications and antitrust matters, effectively distributing the responsibilities that were previously concentrated under Sacks’ purview.
What’s Next for PCAST and U.S. Tech Policy?
The PCAST appointment just prior to Sacks’ departure included an impressive roster of tech industry leaders. As noted by CoinDesk in their coverage of influential figures in crypto policy, Sacks became “one of U.S. President Donald Trump’s earliest major picks for a crypto policy role,” shaping much of the initial regulatory framework for digital assets during his tenure. The council now includes Marc Andreessen, Sergey Brin, Jensen Huang, Mark Zuckerberg, Larry Ellison, Lisa Su, and Safra Catz, among others.
Despite his departure from the operational role, Sacks is expected to maintain proximity to administration decision-making through his PCAST co-chair position alongside Kratsios. The council, which can include up to 24 members, is tasked with advising the President on strengthening American leadership in science and technology, with a particular focus on emerging technologies and workforce implications.
The crypto and AI industries now face a period of recalibration as they adjust to new points of contact within the administration. Industry observers will be closely monitoring whether the policy direction established under Sacks—including efforts to combat “debanking” of lawful crypto businesses and the push for federal preemption of state-level AI regulations—will continue under the new leadership structure.
For the broader crypto ecosystem, the transition underscores the ongoing tension between private sector interests and the demands of full-time public service in shaping digital asset policy.
