On Thursday, the incoming U.S. President Donald Trump revealed that David Sacks, a former Chief Operations Officer at PayPal Holdings Inc. (NASDAQ: PYPL), had been chosen to be the “White House AI and Crypto Czar.” This announcement marks the latest step that the President-elect has taken in his bid to overhaul American policy on various industries and sectors.
Using Truth Social, a social media platform owned by Trump, the President-elect explained that Sacks would be tasked to formulate a framework through which the cryptocurrency industry would get the regulatory clarity it had been yearning for. Such a framework, Trump added, would allow cryptos to thrive in America. Trump’s post didn’t confirm whether “Czar” would be part of Sacks’ job title.
David Sacks is part of a growing number of incoming officials that the new president expects to oversee policy changes relating to the cryptocurrency industry. Others who are expected to play a key role include the nominees who will chair the U.S. SEC (Securities and Exchange Commission) and the CFTC (Commodity Futures Trading Commission). An advisory council on crypto has also been created and will help to reshape policy on digital currencies.
It should be noted that many tech industry leaders backed Trump during his campaign to win the presidency. These backers hope regulation of the crypto and AI space is minimal so that innovation can thrive without being hampered by excessive regulation. Trump positioned himself as someone who would create a favorable environment for these new technologies to thrive, and tech industry giants like Elon Musk threw their weight (and massive cash injections) into his campaign.
Reacting to the announcement of Sacks’ appointment, Steve Jang, who has invested alongside Sacks in a number of AI and crypto ventures, commented that while Sacks would create some guardrails around AI and crypto, he would generally favor minimal regulation.
Jang further stated that he believed Sacks would be more inclined to regulate the ways in which AI is deployed rather than trying to enact rules governing the way AI models are developed and trained. California tried, unsuccessfully, to pass SB 4047, a bill that would have regulated the development of AI models. Vehement opposition from tech investors in Silicon Valley prompted the governor to veto that bill.
Bitcoin breached the $100,000 mark for the first time last week, just a day before Trump announced the choice of David Sacks. This bullish run is largely riding on the industry’s expectation that the new administration will be friendlier to the industry compared to the outgoing one.
The anticipated pro-AI and crypto policy changes could further speed up the rate at which artificial intelligence grows in America, and that, in turn, bodes well for companies like McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) that are focused on gold, silver and copper. These metals have a pivotal role in the burgeoning industry.
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