David Sacks Discusses Trump’s Memecoins

David Sacks, the first AI and Crypto Czar for the White House, stated that Trump’s memecoins, TRUMP and MELANIA, act as collectibles, similar to baseball cards or stamps.

Launched ahead of Donald Trump’s inauguration as the 47th president, Sacks expressed that he doesn’t perceive a conflict of interest with the coins, despite Congressional concerns. In an interview with Fox Business, he remarked, “I think the Trump coin is a collectible. People buy it because they want to commemorate something. This is just my personal opinion. I’m not a regulator, but my personal opinion is that it’s totally fine.”

Contrarily, U.S. Senator Elizabeth Warren and Rep. Jacob Auchincloss argue that the tokens signify a conflict of interest, posing risks of consumer fraud and foreign influence. They conveyed their concerns in a letter to the U.S. Office of Government Ethics and other regulatory bodies.

Warren and Auchincloss stressed that as President, Trump would nominate leaders to enforce laws against crypto companies, placing himself in a position to benefit from the token sales while influencing their regulatory policies. They stated, “TRUMP and MELANIA present grave risks to President Trump’s ability to impartially govern our nation—and to investors in these coins, who may be made victims of a rug pull scheme orchestrated by the Trump family.”

TRUMP and MELANIA Coins Surge

Despite fears of conflict, the TRUMP and MELANIA coins saw an uptick in retail investment, with increased trading on crypto exchanges, particularly for TRUMP. This surge was noted even among traders new to purchasing Solana-based altcoins. Although both coins experienced price drops shortly after launch, the TRUMP token alone achieved $5.9 billion in trading volume recently.

On December 5, Sacks was appointed as the AI and Crypto Czar to guide policy and legal frameworks for the U.S. in these sectors. As founder of Craft Ventures and former PayPal COO, Sacks will oversee potential creation of a U.S. digital asset reserve, though no decisions have been made yet. He said, “We’re evaluating this national stockpile for digital assets. We haven’t created it yet, but we’re going to study that issue.”