David Sacks, the “crypto czar” appointed by Donald Trump, has rejected the idea of taxing cryptocurrency transactions to fill the national Bitcoin reserve. He made these comments on the All-In-One podcast.

Sacks reiterated key points from Trump’s executive order on the strategic digital gold reserve, emphasizing that it must be funded without using taxpayer money.

Podcast host Jason Calacanis proposed a “modest” 0.01% tax on all crypto transactions as a way to generate “free” Bitcoin for the government. Sacks firmly opposed the idea:

“That’s how taxes always start. They describe them as very modest. You know, when the income tax was introduced, it applied to just a thousand Americans, and lawmakers swore it would never affect the middle class.”

Sacks stated that he is “not a fan of new taxes,” even if they are promised to have minimal impact on citizens.

However, while he personally opposes additional levies, Sacks did not completely rule out the possibility of such a measure being implemented in the future.

Following the White House crypto summit on March 7, most top-10 cryptocurrencies saw price declines, and the total market capitalization dropped by 5% within a day.