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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.
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 .
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.
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Fintech and Crypto Firms Seek Bank Charters Under Trump Administration: Reuters
Financial technology and crypto firms are increasingly applying for state or national bank charters, despite the community’s historical resistance to centralized banking.
Ano ang dapat malaman:
- Fintech and crypto firms are increasingly applying for bank charters, anticipating a more favorable regulatory landscape.
- Becoming a bank allows firms to accept deposits and lower borrowing costs but brings stricter oversight.
- Regulatory bodies have historically approved few new bank charters, though recent signals suggest a more streamlined process.
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