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

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David Sacks has just been appointed Trump’s AI & Crypto Czar—but what does that actually mean for startups?

If you’re a founder building in Web3, AI, or defense tech, this appointment might be the most important signal of the next four years.

In this article, I’ll break down what this move means, why it matters, and how it could reshape the venture funding landscape, regulatory policy, and capital access for high-growth founders like you.

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

1. What Just Happened?

David Sacks—former PayPal COO, Yammer founder, and Craft Ventures GP—has been tapped as Trump’s “AI & Crypto Policy Advisor” ahead of the 2026 election cycle.

This isn’t symbolic.

It’s strategic.

Sacks is now the unofficial policy architect for how a second Trump administration could approach:

AI development and regulation
Crypto, DeFi, and Web3 markets
Defense tech & dual-use innovation
Decentralized infrastructure

Expect him to have real influence.

2. Why Was David Sacks Chosen?

Because he’s fluent in tech, markets, media, and power.

Here’s what makes Sacks the perfect pick:

Deep relationships across Silicon Valley
$3B+ under management via Craft Ventures
All-In Podcast reach across political and startup ecosystems
Active voice on crypto, CBDCs, and regulation

In short: he’s a tech bro with policy chops.

3. The Signal to Founders: The U.S. Is Picking Sides

Sacks’ appointment signals a pro-founder, pro-innovation shift—especially if Trump wins again.

While the current administration leans cautious on AI and crypto, Sacks represents:

Light-touch regulation
Permissionless innovation
Capital formation via tokenization
American AI competitiveness vs. China

Founders building in sensitive or emerging tech now have a potential champion inside the White House.

4. What It Means for AI Startups

If you're in AI, here’s what could change:

Faster FDA/DoD approvals for AI in health & defense
Clearer guidelines on LLM liability and foundation model risks
More public-private partnerships for safe AGI development
Less fear around OpenAI-style hallucination lawsuits

This is pro-accelerationism with a pragmatic edge.

5. What It Means for Crypto Startups

Under Sacks' influence, expect a U-turn in regulatory posture toward crypto.

That could mean:

No SEC overreach into DeFi
Pro-Bitcoin mining legislation
Tax incentives for crypto innovation
Ban on CBDC surveillance coins

Founders in Web3 infra, wallets, stablecoins, or tokenized assets will likely see a regulatory tailwind.

6. AI + Crypto = The New Power Stack

Here’s the real alpha: Sacks understands that AI and crypto aren’t separate lanes.

They’re converging.

Expect a push for:

Decentralized compute protocols
Tokenized AI agents
On-chain data marketplaces for LLMs
Permissionless interoperability layers

If you’re building in this overlap, this is your greenlight.

7. Defense Tech Founders: It’s Your Time

With Sacks advising Trump, defense tech might become the new climate tech—heavily funded, politically supported.

Startups in:

Drones & robotics
Dual-use satellite tech
Cyber + AI fusion
Tactical decision systems

…should prepare for DoD-backed venture booms.

8. Will This Spark a Silicon Valley Political Shift?

Possibly.

Sacks has already pulled Elon, Thiel, Balaji, and Chamath into his orbit.

This could normalize:

Open support of Trump in tech circles
Startup media platforms turning political
VCs doubling as policymakers

2026 might be the year founders stop pretending to be apolitical.

9. The All-In Podcast as the New Policy Lab

Sacks, Chamath, Friedberg, and Jason have made All-In a soft power machine.

Now, with Sacks in Trump’s circle, those Thursday night takes could become next week’s policy draft.

Founders, pay attention.

10. What to Expect If Trump Wins Again

Here’s your cheat sheet:

✅ AI acceleration policy
✅ Crypto-friendly infrastructure
✅ China hawkishness in tech
✅ Lower capital gains on startup equity
✅ Increased defense R&D spend
❌ Less support for ESG/climate tech

11. Should You Add “David Sacks” to Your Pitch Deck?

Maybe not literally.

But referencing Craft, or aligning your thesis with:

Free markets
Open protocols
Uncensored platforms
American tech dominance

…is smart signaling if you’re fundraising from LPs aligned with that worldview.

12. What Founders Should Do Now

Position your AI/crypto startup as infrastructure, not hype
Start building relationships with Craft-aligned VCs
Include optionality for government sales
Prepare for compliance-lite fundraising windows

And if you’re launching a company this year, now’s the time to go bold.

13. Is This Good or Bad for Startups?

That depends on where you stand.

But from a pure founder lens, this is the most:

Pro-capital formation
Pro-technology
Anti-bureaucracy

posture we’ve seen from any potential administration in years.

14. Will This Affect Fundraising in 2026?

Yes.

Expect:

LPs to favor “sovereign-aligned” funds
Craft Ventures to gain even more deal flow
Token-based raises to come back
AI infra and defense SaaS rounds to heat up

Your sector will matter more than ever.

15. David Sacks as Kingmaker

Let’s be real—Sacks already has outsized influence in:

Venture capital
Podcasting/media
Founder communities
Twitter/X discourse

Now? Add regulatory gatekeeper to the list.

16. Capitaly’s Take: How to Position Your Startup

We advise founders to:

✅ Use pro-innovation framing
✅ Lean into strategic resilience (supply chains, compute, infra)
✅ Highlight security, autonomy, or privacy benefits
✅ Avoid ESG jargon and show ROI

17. What This Means for VCs

VCs will have to pick lanes:

Align with emerging national interests (AI, defense, energy)
Or stay neutral and risk exclusion

Look for new “Craft-aligned” syndicates to pop up.

18. Sacks’ Anti-Bureaucratic Philosophy

Sacks has long railed against:

SEC overreach
Federal overregulation
Unelected committees stifling innovation

Expect him to help founders bypass the red tape—legally.

19. Related Reading on Capitaly.vc

20. Final Word: Don’t Sleep on This Power Shift

Whether or not you like Trump, David Sacks becoming AI & Crypto Czar is a game-changing moment.

It reshapes how AI, crypto, and defense founders will raise, operate, and exit in the next 5 years.

Don’t ignore the power dynamics.

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

FAQs

1. Is David Sacks officially part of Trump’s 2026 campaign?
Not officially, but he’s a key advisor and policy architect.

2. What sectors benefit most from his role?
AI infrastructure, defense tech, crypto/Web3, decentralized platforms.

3. Is this pro-crypto or just anti-SEC?
Both. Sacks wants regulatory clarity and innovation freedom.

4. Does this mean VCs will become more political?
Yes. Power and capital are aligning like never before.

5. Will this affect how founders pitch?
Absolutely. Messaging around sovereignty, decentralization, and acceleration will resonate more.

6. What’s the risk if Trump loses?
Biden-era regulatory caution could continue, especially around crypto.

7. Is Sacks trying to replace Peter Thiel’s political role?
No, but he’s taking a similar path—just with more startup operator cred.

8. Will AI companies need political lobbying now?
Not directly, but alignment with policy priorities will matter.

9. What should international founders know?
U.S.-aligned startups may get preferential funding, access, and policy tailwinds.

10. Should I care if I’m building consumer SaaS?
Less directly, but downstream effects on infra, capital markets, and media will still touch you.

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