Trump's Executive Order: A New Dawn for Bitcoin Investment?

President Donald Trump's recent executive order (EO) has sparked curiosity and speculation about potential US government investments in Bitcoin. The EO, signed on February 3, directs Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick to create a sovereign wealth fund within the next 12 months. While the EO does not explicitly mention cryptocurrencies, industry advocates and lawmakers have hinted at the possibility of the fund investing in Bitcoin.

Wyoming Senator Cynthia Lummis, a known Bitcoin advocate, posted on Twitter after the EO signing, suggesting that the sovereign wealth fund could be used to buy BTC. Wayne Vaughan, another prominent Bitcoin advocate, believes that Bessent and Lutnick's affinity for Bitcoin could lead to the wealth fund investing in crypto. However, not everyone is on board with Trump's EOs, as several of his previous orders have faced immediate lawsuits from organizations and authorities questioning his power to enact laws through executive actions.

Trump's campaign promises to the crypto industry included pardoning Silk Road founder Ross Ulbricht, establishing a Bitcoin stockpile, having all BTC mined in the United States, and halting the development of a potential US central bank digital currency (CBDC). On January 23, he signed a separate EO establishing a crypto working group and prohibiting a CBDC, but it's unclear whether this order could also face legal challenges.

Bitcoin's price dropped under $100,000 over the weekend amid news of Trump's imports from Canada, China, and Mexico. Following coverage of the sovereign wealth fund EO, the price had returned to over $101,000 at the time of publication.