Warren, Stansbury Probe White House AI & Crypto Advisor David Sacks Over Possible SGE Violation

Senator Elizabeth Warren (D‑MA) and Representative Melanie Stansbury (D‑NM) are leading a group of congressional Democrats investigating whether White House Special Advisor David Sacks exceeded the 130‑day limit for Special Government Employees (SGEs). The inquiry centers on potential conflicts of interest tied to Sacks’ role as the White House advisor on AI and cryptocurrency and his financial ties to Craft Ventures.

Key points

• Sacks was appointed by President Trump in 2024 as White House Special Advisor on AI & Crypto.
• Federal rules cap SGEs at 130 days per year to limit conflicts of interest. The lawmakers’ letter notes that if Sacks worked every calendar day since inauguration, his 130th day was May 29, 2025; if every business day, his 130th day was July 25, 2025. The letter also notes it is the 167th business day of the administration as of the letter’s date.
• The lawmakers wrote:
  

  “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,”

  and asked Sacks to provide a detailed account of his work schedule and activities in the advisory role.

• Concerns stem from Sacks’ background as a PayPal executive and venture capitalist at Craft Ventures, and the potential for regulatory influence over crypto rules while maintaining industry ties.

Context

The inquiry comes as the Trump administration advances crypto policy, including an executive order to create a federal Bitcoin stockpile and passage of the GENIUS Act, which creates a framework for stablecoin regulation. Lawmakers worry that continuing to serve without fully divesting or disclosing investments could create regulatory capture or personal gain.

What’s next

Congressional Democrats have asked Sacks for records and a timeline of his advisory activities, including whether he answers government emails while based in Silicon Valley. The investigation seeks to verify whether ethics rules or norms were violated and to prevent future abuses.

Sources

• Engadget: Democrats investigate Trump crypto advisor David Sacks
• NextGov: Democrats launch ethics investigation into AI & crypto czar
• Public Citizen: SGE oversight and reform context

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