Newly appointed “crypto czar” David Sacks has sharply criticized the U.S. government’s handling of its Bitcoin holdings, calling past decisions to liquidate assets a costly mistake that has deprived taxpayers of billions. His remarks came just one day before industry leaders gathered at the White House to discuss digital asset regulation.
Sacks took to X on Thursday to highlight what he described as financial mismanagement by the federal government. “Over the past decade, the federal government sold approximately 195,000 Bitcoin for proceeds of $366 million,” he wrote. “If the government had held the Bitcoin, it would be worth over $17 billion today. That’s how much it has cost American taxpayers not to have a long-term strategy.”
The liquidation of seized Bitcoin, including assets confiscated from the Silk Road case, has fueled criticism from crypto industry figures. Many argue that retaining the holdings would have significantly boosted the federal treasury.
MicroStrategy co-founder Michael Saylor responded bluntly: “You do not sell your Bitcoin.” Bitcoin advocate Jane Adams went further, calling past sales “theft” and criticizing officials for failing to recognize Bitcoin’s long-term value. “Imagine what could’ve been done with that wealth if only they had a clue about long-term strategy,” she wrote on X.
Industry Leaders Convene at White House Crypto Summit
Sacks’ remarks come as industry executives, including Coinbase CEO Brian Armstrong, Paradigm co-founder Matt Huang, and Exodus CEO JP Richardson, prepare to meet at the White House for a pivotal discussion on digital asset policy. The summit follows a series of regulatory shifts, with the Securities and Exchange Commission (SEC) recently dropping lawsuits against major crypto firms such as Kraken, OpenSea, and Coinbase.
Huang, speaking ahead of the event, emphasized the importance of U.S. leadership in blockchain innovation. “I look forward to discussing how America can take a leadership role in promoting the principles of open crypto and enabling builders in ecosystems such as Bitcoin, Ethereum, and Solana,” he stated.
The SEC’s retreat from enforcement actions suggests a possible shift in Washington’s approach to digital asset regulation. Analysts believe this change could signal a broader realignment toward fostering crypto innovation rather than restricting it through legal battles.
Trump Administration’s Changing Stance on Crypto
President Donald Trump’s administration has increasingly positioned the U.S. as a global player in the crypto industry. In January, Trump signed an executive order establishing a federal crypto task force to explore the feasibility of a strategic national reserve of digital assets.
The initiative represents a stark contrast to previous administrations, which approached cryptocurrency with skepticism. Trump’s policies have drawn mixed reactions, with supporters praising efforts to integrate digital assets into the financial system while critics warn of risks tied to government involvement in crypto markets.
