Democrats Question Status of Trump's Crypto Czar Amid Investigation

Democrats in Congress Question Status of Trump's Crypto Czar David Sacks Congressional Democrats have launched an investigation into whether David Sacks, the former crypto czar under President Donald Trump, has exceeded his temporary work status. According to sources, Sacks was appointed as a "special government employee" (SGE) to lead the administration's digital assets agenda. Senator Elizabeth Warren and other prominent Democrats have expressed concerns that Sacks may have worked beyond the 130-day limit allowed for SGEs. In a letter addressed to the Office of Management and Budget, Warren wrote: "We are concerned that Mr. Sacks' continued service as an SGE may be in violation of federal law." Sacks was appointed as crypto czar in January 2024, and his role was meant to be temporary. However, sources close to the administration have revealed that he has been working on various projects related to digital assets for over a year. The investigation is seen as a test of the Trump administration's handling of SGEs, which are meant to provide expertise on specific issues without committing to long-term government service. Critics argue that Sacks' prolonged tenure raises questions about accountability and transparency in government. A spokesperson for the Office of Management and Budget declined to comment on the investigation, citing ongoing review of the matter. The White House also refused to comment, stating that they would not discuss internal personnel matters. The controversy surrounding Sacks' status has sparked debate among lawmakers and experts. Some argue that his expertise is valuable in shaping policy on digital assets, while others see it as an example of the Trump administration's disregard for rules governing temporary government employees. As the investigation unfolds, Democrats are likely to scrutinize the administration's handling of SGEs and push for greater transparency and accountability. The outcome may have significant implications for future appointments and the role of experts in shaping policy on digital assets. Background: The "special government employee" status was created to allow temporary appointments of experts with specialized knowledge to serve in key roles without committing to long-term government service. SGEs are typically limited to 130 days, but can be extended with approval from the Office of Management and Budget. Additional perspectives: A spokesperson for the Blockchain Association, a trade group representing companies involved in digital assets, expressed support for Sacks' work: "David Sacks has been an invaluable resource for policymakers on issues related to digital assets. We hope that this investigation will not hinder his ability to continue serving the public interest." Senator Ted Cruz (R-TX) criticized the Democrats' investigation, saying: "This is just another example of partisan politics getting in the way of good governance. David Sacks has been a valuable asset to the administration, and we should be supporting his work, not trying to undermine it." Next developments: The outcome of the investigation will likely have significant implications for future appointments and the role of experts in shaping policy on digital assets. As the matter unfolds, Democrats are expected to push for greater transparency and accountability in government. *Reporting by Coindesk.*