President Donald Trump has taken a significant step by signing an executive order, directing the U.S. Treasury Department to establish a sovereign wealth fund.
This initiative, as reported by Reuters, aims to facilitate the acquisition of a stake in TikTok and other investments. A sovereign wealth fund, typically government-owned, is designed to invest in financial assets both within the country and internationally.
According to The Post Millennial, Treasury Secretary Scott Bessent elaborated on the plan, stating, "We're going to stand this thing up within the next 12 months. We're going to monetize the asset side of the US balance sheet for the American people." He further explained that the fund would consist of a mix of liquid assets and domestic resources, which would be leveraged for the benefit of the American populace.
The move to potentially acquire a portion of TikTok follows discussions between Trump and several U.S. companies, including Oracle. This development comes on the heels of a legislative ban on the app, contingent upon the Chinese company ByteDance divesting its interests.
The Supreme Court upheld this ban shortly before Trump's inauguration. In the Oval Office, Trump expressed optimism, stating, "We have tremendous potential," as he signed the order. He also mentioned that Treasury Secretary Bessent and Howard Lutnick would lead the efforts to establish the wealth fund, as noted by Bloomberg. During his presidential campaign, Trump suggested that such a fund could be financed through tariffs and "other intelligent things."
TikTok, which boasts approximately 170 million American users, challenged the ban by suing the federal government, alleging a breach of First Amendment rights. However, the Supreme Court determined that the ban did not violate the petitioners' First Amendment rights. Following his inauguration, Trump issued an executive order to postpone the ban for 75 days, allowing time for a potential resolution.
Beyond the potential TikTok investment, Trump highlighted that the sovereign wealth fund could also support infrastructure projects, including highways, medical research, and airports. This initiative underscores a broader vision for leveraging government assets to bolster economic growth and development in key sectors.
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