Trump signs order for US wealth fund, sparks Bitcoin speculation
|Trump's new order launches a U.S. sovereign wealth fund, fueling Bitcoin speculation as states push pro-crypto laws and digital asset adoption.
Donald Trump has signed an executive order to establish a sovereign wealth fund, setting off excitement among Bitcoin supporters. The order directs the Treasury and Commerce Departments to develop a plan within 90 days to create the fund, aimed at boosting financial security, reducing taxes, and strengthening the US economy.
Sovereign wealth funds are government-controlled investment funds that manage surplus money, often from trade or resource revenues. These funds invest in stocks, bonds, real estate, and other assets to secure long-term financial stability. While the order does not specifically mention Bitcoin or cryptocurrencies, it has fueled speculation due to the response from Senator Cynthia Lummis, a known advocate for digital assets. She reacted to the news on social media with the Bitcoin symbol, leading some to believe the fund might include Bitcoin in the future.
The market’s anticipation of Trump creating a Bitcoin reserve saw a brief increase but later dropped. Previously, Trump had signed another executive order regarding a national digital asset stockpile, which defined digital assets broadly without naming Bitcoin directly. This has left many wondering about the government's stance on crypto.
At the same time, several US states are pushing their own cryptocurrency-friendly laws. Oregon, New Jersey, Mississippi, and Indiana have introduced bills to encourage blockchain technology and digital asset adoption. Oregon’s proposal protects blockchain users from restrictions and removes certain regulatory requirements. New Jersey’s legislation creates a regulatory framework and an enforcement fund for overseeing digital asset businesses. Mississippi’s bill prohibits central bank digital currencies (CBDCs), ensures self-custody rights, and offers tax benefits for small crypto transactions. Indiana’s proposed law protects the right to use digital assets, prevents local bans on crypto, and classifies mining as an industrial activity.
These state-level efforts indicate growing momentum for crypto in the US. While Trump’s executive order does not confirm any direct involvement with Bitcoin, many in the crypto community remain hopeful. The coming months will be crucial in determining whether digital assets play a role in the country’s financial future.
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