David Sacks, the person appointed by President Donald Trump to oversee crypto-related matters, recently faced accusations regarding potential financial benefits tied to a proposed U.S. strategic reserve for cryptocurrencies.

Key Points:

• Allegations emerged suggesting that Sacks might gain from a crypto reserve including Bitcoin (BTC), Ethereum (ETH), XRP, Cardano (ADA), and Solana (SOL).
• Sacks refuted any conflict, asserting he had divested from relevant investments prior to joining the Trump administration.
• Craft Ventures, his venture capital firm, managed to exit its Bitwise investment amid concerns over ties to the tokens listed in Trump’s plan.

During the weekend, Sacks took to X (formerly Twitter) to clarify that any accusations regarding his financial interest in the policy are unfounded, as he sold all crypto holdings before his official role in the government, including his shares in Multicoin Capital.

A lingering inquiry remained whether Craft Ventures retained its investment in Bitwise, which has a fund featuring the assets mentioned in the reserve plan, suggesting it could profit from government purchases. However, it was confirmed that Craft Ventures exited its position in Bitwise prior to the new administration’s start, as confirmed by a source close to the firm.

In Sacks’ defense, he labeled the situation a ’lazy and stupid narrative’, emphasizing that individuals stepping into governmental roles often face significant disruptions and divestitures of business interests.

As the debate around Trump’s reserve continues, some in the crypto community prefer a Bitcoin-exclusive reserve, while others dispute the government’s involvement, citing a contradiction to the decentralized nature of the crypto industry. Questions about conflicts of interest also occupy Trump’s situation, particularly given that a cryptosupported startup he backs possesses considerable assets aligned with the proposed reserve.