Key Finding
White House AI & Crypto Czar David Sacks holds investments in 449 AI and technology companies through his venture fund Craft Ventures and personal portfolio — the most extensive conflict of interest portfolio of any government official in American history. He received a single blanket ethics waiver that allows him to participate in policy decisions affecting all of them.
The 449-Company Problem
When David Sacks was appointed White House AI & Crypto Czar in January 2025, his financial disclosure revealed an investment portfolio of staggering breadth. Through Craft Ventures, the venture capital firm he co-founded, and personal investments, Sacks held stakes in 449 companies across the technology sector — with heavy concentrations in artificial intelligence, cryptocurrency, and enterprise software.
A New York Times investigation published in early 2026 mapped the full extent of the conflicts:
- 127 companies directly in the AI sector — including companies building large language models, AI infrastructure, and AI applications
- 89 companies in cryptocurrency and blockchain — including exchanges, DeFi platforms, and crypto infrastructure
- 233 companies in adjacent tech sectors that are affected by AI and crypto policy
- Combined portfolio value estimated at $500 million to $1 billion
The Blanket Waiver
Federal ethics law requires government officials to recuse themselves from decisions that affect their financial interests. For Sacks, recusal from AI and crypto policy would mean recusal from his entire job.
The solution: the White House issued a single blanket ethics waiver — allowing Sacks to participate in policy decisions that affect his portfolio companies, on the grounds that his expertise was necessary and the conflicts were too numerous to manage through individual recusals.
The waiver was unprecedented in its breadth. Previous ethics waivers had been granted for specific, narrow conflicts. Sacks received permission to make policy affecting 449 companies he profits from.
"This is not an ethics waiver. This is the abolition of ethics. You cannot have a government official making policy that affects 449 companies he personally profits from and call it anything other than corruption."
— Walter Shaub, former Director, U.S. Office of Government Ethics
The Policy Decisions
Since his appointment, Sacks has been involved in multiple policy decisions that directly affect his portfolio:
- AI executive order rescission: Sacks advocated for rescinding Biden's AI safety executive order, which had imposed reporting requirements on companies developing powerful AI models. Multiple Craft Ventures portfolio companies were subject to these requirements.
- Crypto regulatory framework: Sacks led the White House working group developing a crypto-friendly regulatory framework. At least 89 of his portfolio companies stand to benefit.
- SEC enforcement pullback: Sacks reportedly advocated for the SEC to drop enforcement actions against crypto companies — including companies in which Craft Ventures holds investments.
- AI procurement policy: Sacks influenced federal AI procurement guidelines that could steer government contracts toward companies using approaches favored by his portfolio companies.
- Stablecoin legislation: Sacks has been involved in shaping the administration's position on stablecoin regulation — affecting companies in his crypto portfolio.
Sacks Portfolio: Conflicts by Policy Area
| Policy Area | Portfolio Companies Affected | Estimated Portfolio Value | Key Decisions |
|---|---|---|---|
| AI regulation | 127 | $200-400M | EO rescission, safety standards |
| Crypto regulation | 89 | $150-300M | SEC enforcement, stablecoin law |
| Data privacy | 64 | $80-150M | Federal privacy framework |
| Defense/intelligence AI | 31 | $50-100M | Pentagon AI procurement |
| Fintech regulation | 52 | $70-120M | Banking charters, CFPB scope |
| Enterprise software | 86 | $100-200M | Federal procurement rules |
Sources: NYT investigation, Craft Ventures portfolio, OGE financial disclosure
The NYT Investigation
The New York Times' investigation into Sacks' conflicts of interest, published in February 2026, found:
- Sacks participated in at least 23 meetings where policy decisions affecting his portfolio companies were discussed
- He made no recusals during these meetings, relying on the blanket waiver
- At least 7 portfolio companies received direct regulatory benefits within 6 months of policies Sacks influenced
- Sacks continued to communicate with Craft Ventures partners about portfolio company strategy while serving in government
- His financial disclosure was filed 3 months late and initially omitted 47 investments
The All-In Connection
Sacks' role as co-host of the All-In Podcast — one of the most influential tech podcasts with millions of listeners — adds another dimension to the conflict. The podcast reaches investors, founders, and policymakers who are directly affected by Sacks' policy decisions.
Sacks stepped back from regular podcast hosting after his appointment, but his co-hosts — Chamath Palihapitiya, Jason Calacanis, and David Friedberg — continued to discuss AI and crypto policy on the show, often in terms favorable to the administration's positions.
The Historical Comparison
The previous record for conflicts of interest in a White House appointment was held by Rex Tillerson, Trump's first Secretary of State, who had to divest $180 million in ExxonMobil stock. Sacks' 449-company portfolio dwarfs this by orders of magnitude — and unlike Tillerson, Sacks was not required to divest. He was given a waiver instead.
The Ethics Investigation
Multiple ethics complaints have been filed regarding Sacks' conflicts:
- CREW (Citizens for Responsibility and Ethics in Washington): Filed formal complaint with OGE requesting investigation of the blanket waiver
- Congressional Democrats: 47 House members signed a letter demanding Sacks' financial disclosure and meeting logs
- Government Accountability Office: Initiated a review of blanket ethics waivers issued in the current administration
- Office of Government Ethics: Reviewing the waiver process but has not taken public action
As of March 2026, no formal investigation has been opened, and Sacks continues to serve with the blanket waiver in place.
The Bottom Line
David Sacks holds investments in 449 companies while serving as the White House's top AI and crypto policy official. His blanket ethics waiver — unprecedented in scope — allows him to make policy that directly affects up to $1 billion in personal investments. It is the most extensive conflict of interest in the history of the American executive branch, and it is fully legal because the White House said so.
Sources
- New York Times: "The 449 Conflicts of David Sacks" (February 2026)
- Office of Government Ethics: Sacks financial disclosure filing
- White House: Ethics waiver for David Sacks
- CREW: Ethics complaint filing
- Craft Ventures: Portfolio page and SEC filings
- Congressional correspondence: House Democrat letter on Sacks conflicts
- Walter Shaub: Public statements on Sacks ethics waiver