Trump Signs Executive Order For Sovereign Wealth Fund

According to CoinDesk, U.S. President Donald Trump signed an executive order on Monday afternoon directing the Treasury and Commerce Departments to establish a sovereign wealth fund. This move marks a significant step in the administration's economic strategy, potentially impacting various sectors, including cryptocurrency. Treasury Secretary Scott Bessent has shown cautious interest in the crypto sector, while Howard Lutnick, the nominee for Commerce Secretary, is a vocal advocate for digital currencies. Lutnick's firm, Cantor Fitzgerald, serves as the custodian for Tether's substantial holdings in government securities, and he has publicly discussed his significant personal investments in bitcoin (BTC). During the signing ceremony in the Oval Office, Bessent indicated that the sovereign wealth fund is expected to be operational within the next 12 months. Although bitcoin was not explicitly mentioned during the event, the creation of such a fund could provide a mechanism for the government to invest in and hold cryptocurrencies. Following the announcement of the executive order, bitcoin experienced a modest increase in value, reaching $99,600. This development highlights the potential influence of government actions on the cryptocurrency market, as investors and stakeholders closely monitor the implications of the new sovereign wealth fund.