Key dealers
- The White House has rejected parts of a proposal for sovereign wealth fund created by Trump’s advisers.
- The details of Sovereign Wealth Fund are still under debate without final decision that is still announced.
The White House has opposed certain parts of a proposal for sovereign wealth fund developed by the Finance Ministry Scott Bessent and Trade Secretary Howard Lutnick at President Trump’s request, according to a new Report from CBS News.
The plan, reportedly delivered in early May, follows Trump’s executive order in February leading to the Treasury and Trade Departments to develop a framework for an American sovereign wealth fund within 90 days.
The order favored speculation that the fund can be used to obtain bitcoin on behalf of the US government.
But at that time, Bessent and Lutnick said that the fund would really focus on warrants, equity and other non-crypto investments. David Sacks, Trump’s crypto -czar, still indicated that Bitcoin could be included in the fund’s portfolio.
That no longer seems to be the case after Trump signed a separate executive order establish a strategic bitcoin reserve And a digital asset storage on March 6, which suggests an independent strategy for crypto holdings.
There were also rumors that the fund can be financed through customs and other sources of income despite ongoing budget deficits. But Lutnick later made it clear that customs would not be used to support Sovereign Wealth Fund.
According to the CBS News report, White House spokesman Kush Desai said that the Treasury and Trade Departments have developed plans in response to Trump’s directive, but no final decisions have been made.
The administration, added Desai, continues to see the initiative as part of its broader effort to protect national and financial security.
Details of the Fund’s structure and purpose remain during discussion, without any formal announcement that is expected in the short term.
Sources say that Trump has not yet decided how the fund’s revenue would be used, even though he has previously moved the idea that it takes a share in Tiktok, which is facing a potential US ban unless prey disposes of.
With regard to the US strategic Bitcoin reserve and Digital Asset Stockpile, Bessent and Lutnick also have the task of describing operational guidelines, custody frames and acquisition strategies. These plans are expected to remain separate from Sovereign Wealth Fund Initiative and are designed to be Budget neutral.
