{"id":29799,"date":"2025-02-04T11:16:08","date_gmt":"2025-02-04T16:16:08","guid":{"rendered":"https:\/\/leadingcryptonews.com\/trumps-sovereign-wealth-fund-could-bitcoin-be-in-play\/"},"modified":"2025-02-04T11:16:08","modified_gmt":"2025-02-04T16:16:08","slug":"trumps-sovereign-wealth-fund-could-bitcoin-be-in-play","status":"publish","type":"post","link":"https:\/\/leadingcryptonews.com\/trumps-sovereign-wealth-fund-could-bitcoin-be-in-play\/","title":{"rendered":"Trump\u2019s Sovereign Wealth Fund \u2013 Could Bitcoin Be in Play?"},"content":{"rendered":"
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President Donald Trump signed an executive order on February 3, calling for the creation of a sovereign wealth fund.<\/strong>\u00a0<\/p>\n
This follows his previous order establishing a national digital asset stockpile, signaling an increased focus on strategic financial reserves.<\/p>\n
Bitcoiners Eye Trump\u2019s Sovereign Wealth Fund<\/h2>\n
The executive order directs the Secretary of the Treasury and the Secretary of Commerce to devise a comprehensive plan within 90 days for creating the fund.\u00a0<\/p>\n
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\u201cThe United States can leverage such returns to promote fiscal sustainability, lessen the burden of taxes on American families and small businesses, establish long-term economic security, and promote US economic and strategic leadership internationally,\u201d the order read.<\/p>\n<\/blockquote>\n
For context, sovereign wealth funds are state-owned investment funds that manage surplus reserves. These are typically sourced from trade surpluses, commodity revenues, or fiscal excesses.\u00a0<\/p>\n
These funds are invested in a diverse range of assets, including stocks, bonds, real estate, and infrastructure, both domestically and internationally. The goal is to ensure long-term financial stability and economic growth.<\/p>\n
Although the executive order did not explicitly mention Bitcoin (BTC) or other cryptocurrencies, the announcement sparked enthusiasm among Bitcoin advocates because of Senator Cynthia Lummis\u2019 response. Lummis, a well-known advocate for the Strategic Bitcoin Reserve and chair of the Senate Banking Sub-committee on Digital Assets Committee, reacted to the news on X (formerly Twitter).<\/p>\n
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\u201cThis is a \u20bfig deal,\u201d she posted.<\/p>\n<\/blockquote>\n
Her use of the \u201c\u20bf\u201d symbol fueled hopes of Bitcoin\u2019s inclusion in the fund.<\/p>\n
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\u201cAfter Trump signs the order, US will buy Bitcoin for sovereign wealth fund and they will call it as strategic Bitcoin reserves,\u201d one user replied on X.<\/p>\n<\/blockquote>\n
Notably, the market odds of Trump establishing a Bitcoin reserve in the first 100 days on the prediction platform Polymarket improved to 18% after the order. The odds plummeted from 48% on Inauguration Day to 13% by February 1.<\/p>\nOdds of Trump Establishing a Bitcoin Reserve. Source: Polymarket<\/figcaption><\/figure>\n
Trump\u2019s earlier executive order on the digital asset stockpile also broadly defined \u201cdigital assets\u201d without explicitly mentioning Bitcoin.<\/p>\n
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\u201cThe term \u201cdigital asset\u201d refers to any digital representation of value that is recorded on a distributed ledger, including cryptocurrencies, digital tokens, and stablecoins,\u201d the order stated.<\/p>\n<\/blockquote>\n
Crypto Momentum Grows at State Level<\/h2>\n
Meanwhile, amid the speculation, several US states are advancing their own cryptocurrency initiatives. Oregon, New Jersey, Mississippi, and Indiana have recently introduced bills to foster crypto adoption and regulatory clarity.<\/p>\n
Oregon\u2019s HB2071 grants blockchain users specific rights. It prevents state and local governments from restricting digital asset activities. It also exempts certain blockchain transactions from the Oregon Money Transmitters Act.<\/p>\n
New Jersey Assembly Bill 2249 (Digital Asset and Blockchain Technology Act) establishes a regulatory framework for digital asset businesses and creates a Digital Asset Enforcement Fund for oversight.<\/p>\n
Mississippi\u2019s HB 1590 (Blockchain Basics Act) prohibits state and local governments from implementing central bank digital currency (CBDC) and safeguards self-custody rights. It also exempts crypto transactions under $200 from capital gains tax and removes licensing requirements for mining and staking operations.<\/p>\n
Indiana House Bill 1156 protects the right to use, store, and accept digital assets. It prevents local restrictions on crypto transactions and ensures digital asset mining is classified as a permitted industrial activity.<\/p>\n
Indiana has also previously introduced House Bill 1322, which promotes blockchain adoption and Bitcoin investment strategies.<\/p>\n
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Disclaimer<\/p>\n
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