Image: Screenshot of Trump’s announcement superimposed on a photo of David McBee (Pexels)
US President-elect Donald Trump has announced the appointment of an artificial intelligence (AI) and cryptography “czar” as he prepares to return to the White House next month.
Trump, who has transformed from a cryptocurrency skeptic to an enthusiast, is set to begin his second presidential term on January 20, 2025. Since his victory over Kamala Harris in last month’s presidential election, the Republican has made a series announcements concerning senior executives. for its senior team and policies – with the appointment of Elon Musk, CEO of Tesla and X (formerly Twitter), to co-lead a most prominent Department of Government Effectiveness (DOGE).
Writing on his social media platform Truth Social, Trump said David Sacks would be the “White House AI and crypto czar” – a role in which the former PayPal executive would “guide policy… in two areas essential to the future of American competitiveness. “.
The news came days after Trump announced (also via Truth Social) the nomination of Paul Atkins as the next chairman of the Securities & Exchange Commission (SEC). If confirmed, Atkins – a former SEC commissioner who is currently a managing director at Patomak Global Partners – would succeed Gary Gensler. The latter will leave his position on January 20, the regulator announced on November 21.
Learn more: More details emerge on Musk’s Department of Government Effectiveness as US presidential transition continues
Demanding areas
Sacks describes himself on his LinkedIn profile as Director of Operations/Product Manager (and “PayPal Mafia”) at PayPal from 1999 to 2022 and, since 2007, as founder and partner of Craft Ventures, a venture capital firm.
He will “focus on making America the undisputed world leader” in both AI and crypto, Trump wrote.
Both areas are proving challenging for policymakers around the world, who are struggling to keep pace with the risks and opportunities associated with the pace of technological innovation and appetite for adoption.
“He (Sacks) will protect free speech online and keep us away from the bias and censorship of Big Tech,” Trump continued in his social media post. “He will work on a legal framework so that the crypto industry gets the clarity it demands and can thrive in the United States.”
Sacks will also lead the President’s Council of Advisors on Science and Technology (PCAST), Trump wrote. PCAST is the only group of advisors outside the federal government charged with making science, technology, and innovation policy recommendations to the President and the White House.
Trump described Atkins, meanwhile, as a “recognized leader in common-sense regulation,” saying he (Atkins) “believes in the promise of robust, innovative capital markets that meet the needs of investors and who provide capital to make our economy a reality.” The economy is the best in the world.” Trump added that Atkins – who served as SEC commissioner from 2002 to 2008 – “also recognizes that digital assets and other innovations are crucial to making America greater than ever.”
Repeal of Biden’s executive order
Trump is expected to use his second term to introduce sweeping changes to the stance taken by the outgoing administration of current President Joe Biden on AI.
According to the Republican Party platform, which outlines key policies and is titled “Make America Great Again,” the Trump-Vance administration will repeal Biden’s executive order on AI signed in October 2023.
“We will repeal Joe Biden’s dangerous executive order that hinders AI innovation and imposes radical left-wing ideas on the development of this technology,” the manifesto says. “Instead, Republicans support AI development rooted in free speech and human flourishing. »
Biden’s executive order set security and privacy standards for AI to promote its ethical use. It warns that irresponsible use of AI could “exacerbate societal harms such as fraud, discrimination, bias and misinformation.” Besides the risk of worsening social injustices, he also highlighted the potential of AI technologies to “displace and disempower workers; stifle competition; and present risks to national security.”
Podcast: How the US federal government is preparing for President Trump’s arrival
Crypto regulatory puzzle
U.S. government agencies, including the SEC, are fighting for political attention – and power – when it comes to regulating cryptocurrencies.
The House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (known as “FIT21”) in May, in a move described as representing “an unprecedented joint effort to ensure critical protections to consumers and foster innovation in the digital assets sector in the United States. ecosystem”.
But Trump’s election victory derails the legislative cart, with the challenge remaining of resolving jurisdictional conflicts between agencies and establishing clearer regulations.
The president-elect has pledged to make the United States the “crypto capital” and “Bitcoin superpower” of the world. The price of the world’s best-known cryptocurrency, Bitcoin, surpassed US$100,000 (around £78,000) last week (December 4), amid hopes of lighter crypto regulation .
Gensler has been widely considered “anti-crypto,” while his designated successor is considered “pro-crypto.”
In the European Union, the Markets in Crypto-Assets Regulation (MiCAR) entered into force in June 2023 and will be fully applicable from December 30, 2024.
Learn more: What Trump’s presidency means for AI
DOGE: “outside the government”
DOGE (which is also the name of the Dogecoin cryptocurrency that Musk promotes) is created by Trump to “dismantle government bureaucracy, reduce excessive regulations, cut wasteful spending, and restructure federal agencies.”
It will not be a formal government agency, but will work “from outside government” to provide “advice and guidance” to the White House and the Office of Management and Budget to “conduct a large-scale structural reform and create a never-before-seen entrepreneurial approach to government.” Before”.
Musk will co-lead the initiative alongside Vivek Ramaswamy, a biotech entrepreneur who ran for the Republican nomination last year and then supported Trump after dropping out.
Trump called the DOGE initiative the “Manhattan Project of our time” – a reference to the US program to develop the first atomic bomb.
Musk claimed at a rally in October that at least $2 trillion could be cut from the federal budget, or nearly a third of federal government spending.
Trump said Musk and Vivek Ramaswamy would complete their work before Independence Day, July 4, 2026.
This story was originally published on GGF’s sister title, Global Government Fintech.
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