How PayPal Mafia Member David Sacks Became Trump’s Crypto Czar
Some figures fade away, while others grow with the industry. David Sacks is one of the latter. From his early days at PayPal, he didn’t just witness the evolution of digital finance but actively shaped it.
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Today, David Sacks stands at the forefront of one of the most pivotal economic shifts of our time—the battle for transparent and innovation-friendly crypto regulation in the U.S.
His journey is one of wealth, influence, and reinvention, marked by a willingness to take risks and a profound political transformation. Once a tech investor, he is now a policy insider, fighting on the front lines for the future of crypto in the U.S.
Here’s how he got there.
Years at PayPal: The Rise of a Tech Insider
David Sacks entered the tech world at a transformative moment. In 1999, he left McKinsey & Company to join Confinity, a startup founded by Peter Thiel, Max Levchin, and Luke Nosek. Their core mission was to build an online payment system. That startup would later become the legendary PayPal.
As PayPal’s first product leader and later Chief Operating Officer (COO), Sacks played a pivotal role in shaping the company. Specifically, he led product design, sales, fraud prevention, and international expansion, helping drive PayPal’s massive success.
In February 2002, PayPal went public, making it one of the first major IPOs after the September 11 attacks.
Later that year, eBay acquired PayPal for $1.5 billion. That deal not only made David Sacks wealthy but also secured his place in the elite group that would later be known as the PayPal Mafia.
This exclusive club included Elon Musk, Peter Thiel, Reid Hoffman (LinkedIn), and other entrepreneurs who later built some of the world’s most influential tech companies.
However, David Sacks chose a different path.
Reinvention: From Hollywood to Enterprise Tech
After PayPal, David Sacks took an unexpected turn—into Hollywood. In 2005, he financed and produced the satirical film Thank You for Smoking, which earned two Golden Globe nominations.
However, his film career was brief.
By 2006, Sacks returned to tech, launching Geni.com, a platform that allowed users to create their own family trees. Yet, the real breakthrough was an internal communication tool he developed for the company. That tool soon spun off into a separate business: Yammer.
Launched in 2008, Yammer quickly became one of the fastest-growing SaaS platforms, pioneering the concept of a corporate social network—an innovation that was years ahead of its time.
In 2012, Microsoft acquired Yammer for $1.2 billion, solidifying David Sacks' reputation as a tech visionary.
But his next moves would be even more ambitious.
Crypto, Politics, and Ties to Trump
Over the next decade, David Sacks built a reputation as a venture capitalist, angel investor, and startup mentor. Notably, he was an early investor in Facebook, Uber, SpaceX, Palantir, Airbnb, and numerous other companies.
However, his most significant strategic shift came in 2017, when he co-founded Craft Ventures, marking his first major foray into financial markets.
Through Craft Ventures, Sacks actively invested in crypto infrastructure, backing BitGo, Bitwise, and Multicoin Capital. While he recognized blockchain as a transformative technology, he also viewed excessive government intervention as a major threat to innovation.
This belief ultimately pulled him into politics.
Previously, Sacks was not an outspoken political figure. Over the years, he donated to Mitt Romney’s 2012 campaign and Hillary Clinton’s 2016 campaign.
However, by the 2020s, his views took a dramatic turn.
By 2024, David Sacks had become a staunch supporter of Donald Trump, organizing a $12 million fundraiser for his campaign.
Moreover, he invited Trump onto his podcast, All-In, where they discussed censorship, crypto regulation, and the failures of the Biden administration.
His loyalty did not go unrewarded.
On December 5, 2024, Trump appointed David Sacks as the White House Crypto & AI Czar.
His mission was to shape a regulatory framework for the crypto industry and safeguard financial freedom from excessive government oversight.
Read more: Trump Names David Sacks as White House “Crypto Czar”
Regulating the Unregulated: The Mission of the Crypto Czar
David Sacks immediately set out to unify crypto regulations, aiming to establish clear, business-friendly rules. His strategy centered on three key initiatives:
- Stablecoins as a Tool for U.S. Financial Dominance
Sacks championed the GENIUS Act, a bill designed to regulate stablecoins. He argued that, when properly managed, stablecoins could reinforce the U.S. dollar’s status as the world’s reserve currency.
- Ending the Debanking of Crypto Companies
For years, banks had refused to service crypto firms, fearing regulatory backlash. Sacks pushed for policies requiring banks to offer financial services to crypto businesses.
- Creating a Strategic Bitcoin Reserve
In March 2025, Donald Trump signed an executive order to establish the U.S. Bitcoin Reserve, which would hold BTC seized from criminal investigations.
The U.S. government now holds over 200,000 BTC, and David Sacks declared that these assets would no longer be sold, aiming to prevent past mistakes that cost the government $17 billion.
Following his announcement, Bitcoin surged past $90,000. However, that rally was short-lived. Once it became clear that the government had no plans to purchase more BTC, its price dropped below $80,000.
While Bitcoin maximalists hoped for a large-scale government purchase, David Sacks remained cautious.
He stressed that any new Bitcoin acquisitions must be “budget-neutral,” meaning they would not increase national debt or rely on taxpayer funds.
The Future: What’s Next?
As Crypto Czar, David Sacks holds significant power, but his position is far from secure.
On one hand, he enjoys the White House’s trust and has the authority to shape the future of crypto regulation in the U.S. On the other, his financial ties to the industry continue to spark ethical concerns.
Although David Sacks sold his crypto holdings before joining the administration, his firm, Craft Ventures, still holds stakes in some of the biggest crypto companies.
Critics fear that his policies could favor his past investments, while the government becomes increasingly entangled in digital asset speculation.
For now, his top priority is to build a transparent regulatory framework and ensure the U.S. remains a leader in blockchain innovation.
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His success or failure will decide whether the U.S. remains the global leader in crypto finance or cedes that position to countries with more forward-thinking regulations, such as Dubai, Singapore, or Switzerland.
However, one thing is clear: David Sacks is no longer just an investor. Today, he is shaping the financial policies of the world’s largest economy.
From PayPal to crypto, from Hollywood and Yammer to the White House, his journey is a testament to endless reinvention.
And now, as he fights for the legitimacy of cryptocurrencies at the highest level, David Sacks' legacy will be measured not just in dollars, but in Bitcoin, Ethereum, and a new financial system that no longer follows the old rules.
David Sacks' Current Focus
Standing at the intersection of power, politics, and technology, David Sacks is likely assessing the risks and rewards of his role. If he could speak without filters, his thoughts might sound like this:
My entire career has been about building—companies, networks, platforms. But now, I’m creating something bigger: a system that will decide whether the U.S. leads the digital financial revolution or falls behind.
I hope our efforts in Washington bring clarity, not further confusion. Stablecoins will strengthen the dollar, not replace it. Bitcoin will become an American asset, not something driven away by regulators.
I expect entrepreneurs to continue pushing the boundaries. But I also recognize that without clear regulations, capital—and innovation along with it—will inevitably flow elsewhere.
I'm concerned the old guard might resist harder than we expect. That Wall Street, bureaucrats, and conservative politicians will try to hold us back and bury us in red tape. I’ve already seen how excessive regulation has slowed down fintech, I won’t let that happen to crypto.
This is a turning point. If we win this battle, the U.S. will become the undisputed leader of the crypto world. If we lose, we will have handed that future to others.
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