US President Donald Trump has signed an executive order directing the government to create a sovereign wealth fund. According to Senator Cynthia Lummis, Trump is taking a step towards the Strategic Bitcoin Reserve he promised . The Bitcoin price seems to be reacting positively to this, as the digital currency is back above $100,000.
Within 12 months, a US sovereign wealth fund
However, the sovereign wealth fund has not yet been created with the signing of this decree. Trump is merely “setting in motion the process” that will “hopefully” lead to the creation of a US sovereign wealth fund.
According to Finance Minister Scott Bessent, this decree should be implemented within 12 months.
Trump and his representatives did not mention Bitcoin during the press conference. It is therefore unclear to what extent the digital currency will actually play a role in the sovereign wealth fund.
However, they hinted that the US government could buy TikTok. With a sovereign wealth fund, America seems to be following the Swiss model, where the central bank has been investing in stocks for years and owns shares in Apple, among others.
Senator Cynthia Lummis sees the development as positive. She suggests that the US could also use this fund to buy Bitcoin – and she is not the only one with this opinion.
Not everyone is happy with Trump
However, not everyone agrees with Donald Trump’s measures.
A federal judge recently blocked another Trump executive order that sought to abolish birthright U.S. citizenship. The judge called the order “blatantly unconstitutional.”
As for Bitcoin, many are now waiting for the promised Strategic Bitcoin Reserve . In the crypto space, Trump has since pardoned Ross Ulbricht, the founder of Silk Road – which is seen as a gesture to libertarian voters.
Trump had also announced that the US would mine all remaining Bitcoin in the country. However, he has since stopped talking about this idea and it remains to be seen whether he will actually return to it.
Ultimately, however, one must not forget that Bitcoin is hardly Trump’s top priority.
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