President Donald Trump has signed an executive order to create a sovereign wealth fund, exciting Bitcoin supporters. This order instructs the Treasury and Commerce Departments to devise a plan within 90 days. The fund aims to enhance financial security, lower taxes, and boost the US economy.
Sovereign wealth funds are government-managed investment funds that handle surplus money, often from trade or resource revenues. They invest in various assets like stocks, bonds, and real estate to ensure long-term financial stability.
Although the order does not mention Bitcoin or cryptocurrencies directly, it has sparked speculation. Senator Cynthia Lummis, a known supporter of digital assets, reacted positively on social media, using the Bitcoin symbol. This has led some to believe that Bitcoin might be included in the fund in the future.
Initially, the market reacted positively to the news of a potential Bitcoin reserve, but the excitement faded quickly. Previously, Trump had signed another executive order about a national digital asset stockpile, which broadly defined digital assets without specifically naming Bitcoin. This has left many wondering about the government’s position on cryptocurrencies.
Meanwhile, several US states are advancing their crypto-friendly laws. States like Oregon, New Jersey, Mississippi, and Indiana have introduced bills to promote blockchain technology and digital asset use. Oregon’s proposal aims to protect blockchain users and ease regulatory requirements. New Jersey’s legislation seeks to create a regulatory framework for digital asset businesses.
Mississippi’s bill prohibits central bank digital currencies (CBDCs) and offers tax benefits for small crypto transactions. Indiana’s proposed law defends the right to use digital assets and classifies mining as an industrial activity.
