Trump’s executive order could lead to US Bitcoin purchases
U.S. President Donald Trump has signed an executive order to establish a sovereign wealth fund, raising speculation about the potential for the U.S. government to acquire Bitcoin (CRYPTO:BTC).
The executive order was announced on February 3 during a press event in the Oval Office, where Trump directed Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick to initiate the process of creating the fund.
Bessent indicated that the establishment of the fund could occur within the next 12 months and aims to "monetise the asset side of the U.S. balance sheet."
While specifics regarding cryptocurrency investments were not mentioned during the announcement, Wyoming Senator Cynthia Lummis hinted that this fund could facilitate U.S. government purchases of Bitcoin.
She remarked on social media that this development is a “big deal” for Bitcoin advocates.
Additionally, Wayne Vaughan, a proponent of Bitcoin, suggested that both Bessent and Lutnick have favorable views towards cryptocurrency and could structure the fund to include Bitcoin investments.
Despite these optimistic signals, Trump's executive orders have faced scrutiny and legal challenges since he took office.
For instance, previous orders aimed at altering birthright citizenship were deemed unconstitutional by a federal judge.
Trump’s campaign promises included establishing a Bitcoin stockpile and halting the development of a central bank digital currency (CBDC).
Following news of Trump's tariff plans on imports from Canada, China, and Mexico, Bitcoin's price briefly dipped below $100,000 but rebounded to over $101,000 after the announcement of the sovereign wealth fund.
The executive order also mentioned possible acquisitions of assets like TikTok, although it remains uncertain how the fund will be financed or managed.
At the time of reporting, the Bitcoin (BTC) price was $101,446.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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