The status of President Donald Trump’s top crypto adviser, David Sacks, has come under scrutiny as a group of Democratic lawmakers questions whether Sacks has exceeded his legal employment term under the “special government employee” (SGE) status. This classification is designed for federal officials who are serving in a temporary capacity, yet Sacks’ tenure has raised eyebrows and prompted a formal inquiry led by prominent Democrats, including Senator Elizabeth Warren.
The Controversy Unfolds
Sacks, a well-known venture capitalist, has been operating as Trump’s crypto and artificial intelligence czar since the administration took office on January 20, 2025. His role has been integral in advancing Trump’s aggressive pro-crypto agenda, notably celebrating a major law regulating U.S. stablecoin issuers. However, the core of the controversy lies in the duration of Sacks’ service. According to federal law, an SGE is permitted to serve no more than 130 days in a year. If Sacks worked every business day, as the letter signed by Warren and other lawmakers suggests, his 130th day would have been on July 25, 2025.
Democrats Demand Clarity
Senator Warren, alongside colleagues such as Bernie Sanders, penned a letter demanding that Sacks disclose the exact number of days he has worked in his role. The letter accuses Sacks of potentially undermining the intent behind the SGE designation, which is to allow temporary expertise to enter government without enduring the full bureaucratic hiring process. “If you have indeed passed the 130th day mark, you are undermining the careful balance Congress struck in creating the SGE designation,” the letter states.
The inquiry is part of a broader concern among Democrats about the potential for SGEs to exploit their positions for financial gain. Earlier this year, there were legislative efforts to curb such possibilities, with Warren spearheading initiatives to limit the roles and influence of SGEs in government.
A Matter of Interpretation
The interpretation of Sacks’ tenure is further complicated by the flexibility in how different agencies account for the 130-day limit. In some cases, the limit is governed by a “good faith” estimate of how long the official anticipates serving, rather than a strict day-by-day count. This ambiguity has led to varied applications of the rule across different parts of the government.
In defense of Sacks, some argue that his expertise and continued involvement are crucial for the administration’s crypto policies, which have significant implications for the U.S. financial landscape. Trump’s administration has previously utilized the SGE status for other significant figures, such as Tesla CEO Elon Musk, reflecting a strategy of bringing high-level expertise into governmental roles without the constraints of permanent employment.
Balancing Expertise and Accountability
While the need for specialized knowledge in rapidly evolving fields like cryptocurrency and artificial intelligence is undeniable, it raises questions about the balance between leveraging such expertise and maintaining accountability within government operations.
Sacks’ role as the czar has also seen him manage the administration’s crypto advisory, a position that experienced a shuffle when Bo Hines departed to join Tether as its top U.S. executive. Hines was replaced by Patrick Witt as the executive director of the President’s Council of Advisers on Digital Assets. Witt has expressed continued collaboration with Sacks, emphasizing the importance of stable leadership in navigating the complex crypto landscape.
Future Implications
As the investigation unfolds, it may set a precedent for how SGEs are utilized in future administrations. The outcome could influence legislative changes and shape the parameters within which temporary government employees operate, particularly in high-stakes policy areas.
The situation underscores the tension between the need for flexibility in hiring processes to capture top talent and the imperative of adhering to legislative standards that ensure temporary roles do not morph into de facto permanent positions. As the Democrats await Sacks’ response, the broader crypto community watches closely, aware that the implications of this inquiry could ripple through the governance of digital assets in the U.S.
In the coming weeks, the response from Sacks and the Trump administration will likely provide further clarity on this issue, potentially prompting more discourse on the balance of power and expertise in government roles, especially in sectors as pivotal and fast-paced as cryptocurrency and artificial intelligence.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
