Trump Signs Executive Order to Establish Sovereign Wealth Fund
On Monday afternoon, U.S. President Donald Trump took a significant step in the financial sector by signing an executive order directing the Treasury and Commerce Departments to establish a sovereign wealth fund. This initiative is seen as a potential game changer in how the government engages with emerging technologies, particularly in the cryptocurrency space.
Treasury Secretary Scott Bessent has shown a measured interest in cryptocurrency, indicating that he recognizes its growing importance in the financial landscape. Meanwhile, the nominee for Commerce Secretary, Howard Lutnick, has emerged as a vocal advocate for the crypto industry. Lutnick, who leads the bond trading firm Cantor Fitzgerald, has developed a notable connection to the sector as his company acts as the custodian for Tether’s substantial holdings of government securities. Additionally, Lutnick has openly discussed his own significant investments in bitcoin (BTC), showcasing his personal commitment to the digital currency.
During the executive order signing in the Oval Office, Bessent expressed optimism about the timeline for the sovereign wealth fund, stating that he anticipates its formation within the next 12 months. Although bitcoin was not specifically mentioned during the signing event, the establishment of a sovereign wealth fund could serve as a strategic vehicle for the government to invest in and hold cryptocurrencies.
In the wake of the announcement, bitcoin experienced a modest increase, rising to $99,600, reflecting the market’s positive reaction to the news of the executive order.
