Donald Trump Signs Order for Sovereign Wealth Fund, Stirs Bitcoin Enthusiasts’ Expectations

President Donald Trump signed an executive order on February 3, calling for the creation of a sovereign wealth fund. 

This follows his previous order establishing a national digital asset stockpile, signaling an increased focus on strategic financial reserves.

Bitcoiners Eye Trump’s Sovereign Wealth Fund

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. 

“The 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,” the order read.

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. 

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.

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’ 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).

“This is a ₿ig deal,” she posted.

Her use of the “₿” symbol fueled hopes of Bitcoin’s inclusion in the fund.

“After Trump signs the order, US will buy Bitcoin for sovereign wealth fund and they will call it as strategic Bitcoin reserves,” one user replied on X.

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.

Odds of Trump Establishing a Bitcoin Reserve. Source: Polymarket

Trump’s earlier executive order on the digital asset stockpile also broadly defined “digital assets” without explicitly mentioning Bitcoin.

“The term “digital asset” refers to any digital representation of value that is recorded on a distributed ledger, including cryptocurrencies, digital tokens, and stablecoins,” the order stated.

Crypto Momentum Grows at State Level

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.

Oregon’s 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.

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.

Mississippi’s 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.

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.

Indiana has also previously introduced House Bill 1322, which promotes blockchain adoption and Bitcoin investment strategies.