David Sacks, the prominent venture capitalist and co-founder of Craft Ventures, has divested more than $200 million worth of digital asset-related investments ahead of assuming his role as the Trump administration’s AI and cryptocurrency advisor.

According to a White House memorandum issued by Presidential Counsel David A. Warrington, Sacks, along with Craft Ventures, liquidated significant holdings in major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). The sell-off also included his positions in the Bitwise 10 Crypto Index Fund (BITW), Coinbase (COIN), Robinhood (HOOD), and various private digital asset companies.

Sacks also moved to exit limited partner positions in crypto-focused investment funds, including Multicoin Capital and Blockchain Capital. The White House notes that this decision was made "out of an abundance of caution," as these firms may continue investing in the digital asset industry.

The scale of the divestment was substantial, with over $200 million in crypto-related assets sold, including at least $85 million in personal holdings. The move was aimed at maintaining the integrity of Sacks’ new role as a special advisor for cryptocurrency policy. Warrington emphasized that Sacks had taken "significant steps to minimize potential conflicts of interest," ensuring his advisory position remains unbiased.

However, while Sacks has either fully liquidated or is in the process of selling off his remaining crypto exposure, Craft Ventures still holds interests in several blockchain-related companies. These include the digital asset custody platform BitGo, proof-of-space and proof-of-time blockchain Chia Network, and blockchain-based gaming developer Dapper Labs.

As Sacks steps into his government advisory role, his actions highlight the delicate balance between public service and private sector interests, particularly in the rapidly evolving world of digital assets. His decisions will likely shape the future of U.S. crypto policy as the administration navigates this dynamic industry.