Michaela
White House Crypto and AI czar David Sacks warned that artificial intelligence’s greatest danger isn’t a dystopian robot uprising but its potential use in mass surveillance. He cautioned that the real threat lies in AI systems monitoring citizens and shaping access to information, raising serious concerns about government overreach and control.
Key points:
- White House Crypto and AI Czar David Sacks warned that AI’s biggest danger lies in government surveillance and information control, not a robot uprising.
- Sacks criticized heavy-handed AI regulations from the Biden administration and blue states, arguing they could suppress innovation and embed political bias.
- He said the Trump administration aims for clear, supportive crypto rules while favoring a lighter, innovation-driven approach to AI oversight.
“I almost feel like the term ‘woke AI’ is insufficient to explain what’s going on because it somehow trivializes it,” Sacks said during Monday’s episode of a16z’s The Ben & Marc Show. In the discussion, Sacks outlined how the Trump administration plans to approach regulation around both cryptocurrency and artificial intelligence.
Sacks warned that excessive regulation could shape AI systems to reflect government biases, potentially allowing authorities to manipulate information that conflicts with their preferred narratives. He referred to this concept as “Orwellian AI,” drawing inspiration from George Orwell’s dystopian novel 1984. The classic work envisions a society under constant surveillance, where truth is controlled by an authoritarian regime led by the ever-present figure of “Big Brother.”
“We’re talking about AI that lies to you, that distorts an answer, that rewrites history in real time to serve a current political agenda of the people who are in power,” Sacks stated. “To me, this is the biggest risk of AI… It’s not The Terminator, it’s 1984,” he added.
The crypto and AI czar also criticized the Biden administration and Democratic-led states like California and Colorado for adopting what he described as an overly aggressive stance on AI regulation. He argued that their consumer protection measures targeting “algorithmic discrimination” represent an excessive and restrictive approach to governing emerging technologies.
Sacks said the Trump administration seeks to set clear, supportive rules for the cryptocurrency sector, describing its stance as “pro-regulation.” In contrast, he called for a lighter regulatory approach toward artificial intelligence, arguing that reduced oversight is key to fostering innovation and ensuring the U.S. remains competitive in the global AI race.
Crypto and AI Czar Weighs In as States Push Stricter Tech Laws
On October 13, Governor Gavin Newsom approved Senate Bill 243, a new law aimed at strengthening California’s protections for children online while addressing risks tied to emerging technologies such as artificial intelligence. The legislation imposes stricter rules on digital platforms, requiring age verification measures, protocols for self-harm and suicide prevention, warning labels for social media and AI companion tools, and tougher penalties for companies that profit from illegal deepfakes.
Starting in 2026, the legislation will mandate that operators of specific AI companion chatbots file yearly reports with the Office of Suicide Prevention, outlining the steps they have taken to identify and respond to users expressing suicidal thoughts. The Office will be responsible for publishing these reports on its official website, a move intended to enhance transparency and accountability in the deployment of AI-powered technologies.
As the debate over AI and crypto regulation continues to intensify, Sacks’ comments spotlight a broader divide shaping the future of U.S. technology policy, one between innovation and control. With the Trump administration signaling a contrasting approach from its predecessors, the coming years could redefine how America balances progress, privacy, and power in the digital age.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
