US Establishes First Sovereign Wealth Fund to Invest in Infrastructure and Research

President Donald Trump has signed an executive order to establish the first US sovereign wealth fund, which will be managed by the Treasury and Commerce Departments. The fund aims to “monetize the asset side of the US balance sheet” and will be set up within the next 12 months.

The fund will include a combination of liquid assets to benefit Americans and will be financed through tariffs and other unspecified sources. The primary goal is to invest in infrastructure projects such as highways, airports, manufacturing hubs, and medical research.

No Direct Mention of Cryptocurrencies

Interestingly, the executive order does not specifically mention cryptocurrencies or digital assets. However, given the recent actions of the administration, there is speculation about how the sovereign wealth fund might intersect with the crypto market.

If the US sovereign wealth fund begins to embrace blockchain-based assets, it could provide legitimacy to Bitcoin or tokenized treasury bonds as components of a government-supported investment strategy. Conversely, there are concerns that a state-managed fund could lead to increased regulation or create competition with decentralized finance.

Previous Crypto-Related Executive Order

Just a few days earlier, President Trump signed another crypto-related executive order, which canceled previous directives concerning central bank digital currencies and prohibited federal agencies from creating or promoting them. This order also established a group responsible for proposing a federal regulatory framework for digital assets within 180 days.

Potential Impact on the Crypto Landscape

With global sovereign wealth funds managing over $8 trillion, the US’s foray into this sector could transform financial markets and potentially alter the crypto landscape—depending on the role digital assets play in its investment strategy.

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