US crypto czar David Sacks exits amid stalled legislation debates

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Highlights

David Sacks steps down after reaching 130-day legal limit
Key crypto bills including Clarity Act remain unresolved
Industry divisions deepen uncertainty around U.S. crypto regulation

Resignation at a critical moment

Sacks served as a Special Government Employee (SGE), a temporary status that allows private-sector experts to work in government without full-time employment. By law, SGEs can serve no more than 130 days per year. In an interview with Bloomberg on Thursday, Sacks confirmed he had reached this limit and would step down.

He will remain involved with the Trump administration as co-chair of the technology advisory council, but is leaving his role as “crypto czar” at a crucial time for the industry, with several key legislative initiatives still unresolved.

Most notably, progress on the market structure bill, the Clarity Act, has stalled. After passing the House last year, a Senate version was approved by the Agriculture Committee in January. However, consideration in the Senate Banking Committee—necessary for addressing securities law implications—was delayed after Coinbase CEO Brian Armstrong said the company could not support the bill in its current form. As of Wednesday, no new hearing date had been announced.

Even deeper divisions have emerged over a new bill regulating stablecoin yields. The proposal would prohibit platforms from offering direct or indirect returns on “passive stablecoin balances,” while allowing limited activity-based rewards.

A conference call this week among crypto exchanges, fintech firms, and venture funds reportedly devolved into mutual accusations. Some participants criticized the proposal as impractical, while others argued it is necessary to balance innovation with traditional finance.

Crypto legislation remains in limbo

Sacks’ departure highlights a structural issue in U.S. tech policymaking: reliance on temporary private-sector experts. While the SGE framework allows rapid recruitment of top talent, it also limits their long-term impact—especially critical for complex reforms like crypto regulation. As a result, even politically supported initiatives can stall during inter-agency coordination and industry negotiations.

At the same time, a lack of consensus within the industry is increasing regulatory uncertainty. Tensions between crypto companies, fintech firms, and traditional financial institutions are slowing the formation of clear rules, raising the risk that the U.S. could fall behind jurisdictions with more predictable regulatory frameworks. In this context, Sacks’ exit may not only be a personnel change but also a factor delaying broader crypto policy progress.

As we wrote, Trump Science Council adds tech leaders and crypto representative

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