Warren, Stansbury, Members of Congress Launch Investigation into Trump Crypto & AI Czar’s Ethics Conflicts

Warren, Stansbury, Members of Congress Launch Investigation into Trump Crypto & AI Czar's Ethics Conflicts

As a designated Special Government Employee, David Sacks - who has huge crypto and AI investments - may have exceeded 130-day term limit, sparking new ethics concerns

"For you in particular, compliance with the SGE time limit is critical, given the scale of your conflicts of interest."

Text of Letter (PDF)

Washington, D.C. - U.S. Senator Elizabeth Warren (D-Mass.) and Representative Melanie Stansbury (D-N.M.) today led Senators Richard Blumenthal (D-Conn.), Chris Van Hollen (D-Md.), Jeff Merkley (D-Ore.) and Bernie Sanders (D-Vt.), and Representatives Betty McCollum (D-Minn.) and Rashida Tlaib (D-Mich.), in launching an investigation into new ethics concerns involving White House Special Advisor for AI and Crypto David Sacks - namely whether Sacks has exceeded the 130-day term limit for serving in his role.

The White House already waived ethics restrictions to allow Sacks to maintain deep investments in crypto and AI companies that he has the power to impact as Trump's Crypto and AI Czar. Now, it appears that Sacks may be exceeding the 130-day term limit associated with his role as a designated Special Government Employee (SGE), raising fresh ethics issues.

"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, particularly as it moves to implement recently enacted cryptocurrency legislation and put in place new rules for the crypto industry," wrote the lawmakers.

SGEs enjoy more flexible ethics requirements expressly because the role is temporary, limited to "one hundred and thirty days during any period of three hundred and sixty-five consecutive days." Unlike regular employees, SGEs may be paid by private entities for time spent working for the federal government - allowing Sacks to simultaneously serve as a General Partner at the venture capital fund Craft Ventures while working in the federal government.

The Office of Government Ethics (OGE) has made clear that adhering to the 130-day limit is critical for SGEs. But it is unclear how many days Sacks has worked as an SGE for the Trump administration - and the lawmakers are concerned that he may have passed the 130-day mark, violating the core definition of the SGE role.

"You were appointed in December 2024 and began work for President Trump on or around January 20, 2025. If you have worked every calendar day since the presidential inauguration, your 130th day of work in this role was May 29, 2025, and if you have worked every business day, your 130th day was July 25, 2025. As of the date of this letter, it is the 166th business day of this Administration," wrote the lawmakers. "For you in particular, compliance with the SGE time limit is critical, given the scale of your conflicts of interest."

Senator Warren and Representative Stansbury recently introduced the SGE Ethics Enforcement & Reform (SEER) Act to strengthen transparency and ethics requirements for SGEs. In Sacks' case, the bill would have required OGE to concur before the White House issued ethics waivers; forced Sacks to recuse from more crypto- and AI-related matters that impact his investments; and would require Sacks' financial disclosure to be public. The bill also may have restricted Sacks from officially communicating with agencies and offices that regulate or contract with Craft Ventures.

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