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US President Donald Trump has signed an executive order for the creation of a sovereign wealth fund within the next year.
The order directs the Treasury and Commerce departments to submit a plan for such a fund within 90 days, which must include recommendations on "funding mechanisms, investment strategies, fund structure, and a governance model."
Sovereign wealth funds (SWFs) typically use a country's budget surplus to invest in assets that generate long-term returns. However, the United States operates under a budget deficit. The creation of an SWF in the US would also likely require congressional approval.
"We're going to create a lot of wealth for the fund," Trump told reporters, adding, "And I think it's about time that this country had a sovereign wealth fund."
Treasury Secretary Scott Bessent appeared alongside Trump at the Oval Office on Monday during the signing of the executive order. "We're going to monetize the asset side of the U.S. balance sheet for the American people," Bessent said. "There'll be a combination of liquid assets, assets that we have in this country as we work to bring them out for the American people."
While Bessent has expressed cautious interest in crypto, Commerce Secretary nominee Howard Lutnick has been a strong advocate for the industry.
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Lutnick, who also serves as the CEO of Cantor Fitzgerald was previously considered for Treasury Secretary but faced resistance amid competition with investor Scott Bessent.
More interestingly, Lutnick has increasingly become a notable figure in the crypto industry through his leadership in diversifying Cantor Fitzgerald's investment and technology ventures. Although renowned for its financial services in traditional markets, Lutnick spearheaded efforts to embrace blockchain and cryptocurrency innovations.
Cantor Fitzgerald has explored opportunities to leverage blockchain technology to enhance financial market infrastructure under Lutnick's guidance.
Initiatives like tokenizing traditional financial assets, and enabling more efficient trading and settlement processes were all credited to Lutnick's foresight, which includes positioning Cantor Fitzgerald as a leader in the institutional adoption of cryptocurrency. The firm has also been a custodian for Tether's reserves since 2021, managing a significant portion of the assets backing Tether’s USDT stablecoin.
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