David Sacks Becomes Trump’s AI & Crypto Czar – What That Means for Startups

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In a headline that stunned Silicon Valley and Washington alike, David Sacks — co-host of the All-In Podcast and Craft Ventures founder — is reportedly set to become the AI & Crypto Czar under a second Trump administration.

Love him or hate him, Sacks now holds the most powerful startup-adjacent policy seat in America.

And if you’re a founder building in AI or Web3, you need to understand what this means — for regulation, for capital access, and for the entire innovation ecosystem.

Let’s break it down.

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1. What Is an “AI & Crypto Czar”?

This is not a ceremonial role.

It’s reportedly modeled after the National Cyber Director — but focused exclusively on:

• Coordinating national AI strategy
• Overseeing crypto regulation frameworks
• Advising on defense tech and digital currency policy
• Aligning capital markets with innovation priorities

In short: it’s a tech-forward policy czar with sweeping influence across startups, venture capital, and federal dollars.

2. Why Sacks? Why Now?

David Sacks checks every box:

• Deep tech operator (PayPal Mafia)
• Pro-innovation, anti-bureaucracy libertarian
• Early investor in OpenAI, SpaceX, Palantir, Uber, and crypto protocols
• Political bridge between Silicon Valley and the Trump camp
• Regular critic of the current “DC doesn’t get tech” regime

Trump wants results. Sacks wants deregulation.

They’re betting on each other.

3. What This Means for AI Startups

This move could massively shift the landscape for AI founders:

• Less red tape for foundation model builders
• Faster approvals for AI in defense, health, and finance
• More public-private partnerships for dual-use AI
• Export rule revisions to compete with China
• LLM safety policy reframed from “guardrails” to “freedom to innovate”

In other words: if you hated the slow crawl of Biden’s AI task force — Sacks is your guy.

4. What About Crypto Founders?

Sacks has been consistently pro-crypto since the early 2010s.

His agenda may include:

• Rolling back SEC enforcement overreach
• Clarity on token classification (commodity vs. security)
• Support for US-based stablecoins and CBDC alternatives
• Tax reform for crypto holdings and DAOs
• Encouragement of onshore crypto innovation

For more on crypto’s infrastructure opportunity, see Crypto Isn’t Dead – It’s Institutional Now.

5. Winners: Who Benefits Most?

The startups most likely to benefit from a Sacks policy regime:

• Open-source LLM companies with commercial readiness
• Crypto infrastructure (wallets, identity, privacy, compliance)
• Defense-tech with AI cores
• Agentic AI platforms with enterprise + federal use cases
• Deep tech companies needing public-private investment

6. Losers: Who Might Lose Ground?

Startups built on:

• Regulatory capture (e.g., AI safety think tanks)
• Closed-loop ecosystems
• Rent-seeking compliance wrappers
• Publicly anti-Trump, anti-Sacks narratives

Might find themselves out of favor with the new regime.

That’s the realpolitik of 2025.

7. Will Sacks Clash with Big Tech?

Absolutely.

Sacks has long criticized:

• Meta's centralized data hoarding
• Google's monopoly over LLM pipelines
• Apple's walled-garden control
• The “coastal cartel” of AI ethics overlords

If you're a startup challenging Big Tech, this could be your window.

8. Could This Spark a Brain Drain From SF to DC?

Yes.

Expect more:

• Founders flying to D.C.
• Lobbyists targeting AI/crypto founders
• “GovTech + FrontierTech” funds emerging
• Startups rewriting their decks to include “national resilience,” “dual-use,” and “compliance advantage”

If you're not already framing your AI or crypto startup for the policy arena, you're behind.

9. Will This Affect Capital Flows?

Yes.

VCs close to Sacks — and the All-In crew — will likely see increased deal flow in:

• Defense
• AI safety (non-woke version)
• LLM agentic systems
• Hardware-software edge compute
• Crypto infra

SPACs might return (see: Chamath Palihapitiya Files for New $250M SPAC Targeting AI, Crypto, and Defense)

10. What Founders Should Do Now

If you’re in AI, crypto, or defense — reposition your startup now:

• Align your messaging with national strategic goals
• Build compliance narratives that fit a Sacks-style governance approach
• Court investors close to the All-In orbit
• Monitor legislation pipelines that could accelerate your business
• Don’t be afraid to go direct to DC

And if you need help, start here: The Ultimate Guide to Raise Capital for Your AI Startup

FAQs

1. Is this a confirmed appointment?
Reports indicate Trump plans to install David Sacks as “AI & Crypto Czar” in a second term, but official confirmation may depend on election outcome.

2. What power would this role actually have?
Think of it as a cross between a policy architect, investment signal, and federal tech gatekeeper — with real influence on regulation, funding, and approvals.

3. What’s Sacks’ background in AI or crypto?
He was early to OpenAI, backed crypto platforms like BitGo, and has funded frontier tech through Craft Ventures.

4. Is this good or bad for AI safety?
Depends who you ask. Some say it’s pro-innovation. Others fear it deprioritizes ethics in favor of acceleration.

5. Will he deregulate crypto entirely?
Unlikely — but he may focus on clarity over enforcement. Think “rules of the road,” not “regulate by lawsuit.”

6. What’s his relationship to Trump?
Sacks hosted a major Trump fundraiser and has become a bridge between Trump’s team and tech’s libertarian wing.

7. Will Big Tech resist this?
Definitely. Sacks has been a vocal critic of centralized AI development and will likely push decentralization.

8. Is this only for US startups?
Initially, yes. But it could influence global norms and capital allocation — especially in allied nations.

9. What’s the likely impact on VC behavior?
Expect more defense-tech funding, red-state founder support, and gov-aligned pitch decks.

10. Should I change my pitch now?
Yes — if you’re raising capital or seeking regulatory clarity, now is the time to reposition around this shift.

Conclusion

David Sacks becoming Trump’s AI & Crypto Czar isn’t just political — it’s a seismic shift in how the US government interfaces with startups.

If you’re building in AI, Web3, or dual-use tech, it could unlock faster funding, clearer regulations, and priority partnerships.

Ignore it at your peril.

Subscribe to Capitaly.vc Substack (https://capitaly.substack.com/) to raise capital at the speed of AI.

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