Elizabeth Warren Escalates her Fight Against Trump’s Crypto Policy by Requesting Clarification from David Sacks on Potential Conflicts of Interest ahead of White House Crypto Summit
Senator Elizabeth Warren, a prominent opponent of cryptocurrencies, is intensifying her fight by demanding immediate clarifications from David Sacks, the crypto advisor to Donald Trump. On the eve of the first crypto summit held at the White House, Warren has sent a fiery letter demanding the full disclosure of Sacks’ financial interests, particularly regarding potential conflicts of interest.
Offensive Against David Sacks and Trump’s Crypto Policy
Warren, who had previously committed to building an ‘anti-crypto army,’ is concerned about potential maneuvers by the Trump administration to favor certain digital assets and deregulate the sector. Her letter coincides with the recent signing of a presidential decree to establish a US Strategic Bitcoin Reserve.
A Bitcoin Reserve Financed by Judicial Seizures
Donald Trump has officially launched, by decree, the creation of a ‘U.S. Strategic Bitcoin Reserve.’ This reserve will initially consist of the 100,000 BTC (approximately $9 billion) already held by the federal government, derived from judicial seizures. Unlike previous speculation, the Trump administration does not plan to actively purchase Bitcoin on the market unless budget-neutral strategies are found.
In parallel, the decree also establishes a ‘Crypto Asset Stock,’ encompassing other cryptocurrencies confiscated in criminal or civil proceedings. However, no additional acquisitions are planned outside of these seizures, contrary to the hopes of some in the crypto industry.
Suspicions of Conflicts of Interest Surrounding David Sacks
Warren demands that Sacks reveal whether he has submitted all of his financial disclosures to the Office of Government Ethics and clarify the exact dates of his disinvestment in cryptos. The former investor recently claimed to have sold all of his holdings in BTC, ETH, and SOL before Trump’s arrival at the White House, but this version remains under criticism.
He also denied holding indirect stakes through the Bitwise Crypto Index Fund, stating that he liquidated his $74,000 position on January 22. Additionally, he announced his withdrawal from the Multicoin Capital investment fund, specializing in blockchain.
However, Senator Warren wants further information and demands clarification on the individuals who were aware of Trump’s decision before its official announcement. She suspects that insiders may have profited from the information by purchasing certain assets prior to the decree’s publication.
SEC under Pressure after Dropping Lawsuits against Coinbase and Kraken
Warren not only attacks Sacks and the White House but also criticizes the Securities and Exchange Commission (SEC), accusing it of dropping several lawsuits against industry giants like Coinbase, Robinhood, and Kraken. According to her, these decisions, combined with the recent classification of memecoins as non-securities, could favor speculation to the benefit of billionaire investors and insiders close to the Trump administration.
The senator is particularly concerned about the impact of these decisions on the American middle class. She denounced, ‘These measures could enrich a well-connected elite at the expense of ordinary families.’
A Political Battle that Will Shape the Future of Cryptos in the United States
With the establishment of the Strategic Bitcoin Reserve and the growing influence of the White House in crypto policy, the battle between pro and anti-crypto forces is reaching a new peak. On one hand, Trump seems to want to position the United States as a major player in the sector while offering a more permissive framework for crypto companies. On the other hand, Warren and skeptical regulators fear uncontrolled deregulation that could facilitate questionable practices.
As the White House crypto summit opens amid high tension, the outcome of this standoff between Washington and the crypto industry could redefine the regulatory framework for digital assets in the years to come.
