Share this article
Trump Orders Creation of Sovereign Wealth Fund
Such a fund could be a vehicle through which the government might accumulate bitcoin.
Feb 3, 2025, 6:34 p.m.
Make us preferred on Google
What to know:
- The U.S. president signed an executive order directing the creation of a sovereign wealth fund.
- The Treasury and Commerce Departments are set to spearhead the effort.
- Though bitcoin wasn't mentioned at the signing, the fund could conceivably house the government's bitcoin holdings.
U.S. President Donald Trump signed an executive order Monday afternoon charging the Treasury and Commerce Departments with creating a sovereign wealth fund.
While Treasury Secretary Scott Bessent has expressed at least cautious interest in crypto, Commerce Secretary nominee Howard Lutnick has been a loud champion for the sector. His bond trading powerhouse Cantor Fitzgerald is the custodian for stablecoin giant Tether's massive holdings of government paper, and Lutnick himself has talked about his own personal massive exposure to bitcoin .
STORY CONTINUES BELOW
Appearing alongside Trump in the Oval Office Monday, Bessent said he expected the sovereign wealth fund to be created in the next 12 months. While bitcoin reportedly was not mentioned at the signing, a sovereign wealth fund could potentially be a vehicle through which the government might buy and hold the crypto.
Bitcoin rose modestly to $99,600 in wake of the executive order news.
More For You
More For You
Crypto group counters Wall Street bankers with its own stablecoin principles for bill
After the bankers shared a document at the White House demanding a total ban on stablecoin yield, the crypto side answers that it needs some stablecoin rewards.
What to know:
- The U.S. Senate's crypto market structure bill has been waylaid by a dispute over something that's not related to market structure: yield on stablecoins.
- The Digital Chamber is offering a response to a position paper circulated earlier this week by bankers who oppose stablecoin yield.
- The crypto group's own principles documents argues that certain rewards are needed on stablecoin acvitity, but that the industry doesn't need to pursue products that directly threaten bank deposits business.
Top Stories
