🖋️ Trump Signs Executive Order
On February 3, 2025, President Donald Trump signed an executive order directing the Treasury and Commerce Departments to establish a U.S. sovereign wealth fund. He suggested this fund could be used to purchase TikTok, the popular social media platform owned by China's ByteDance. "We have tremendous potential," Trump stated from the Oval Office. "I think in a short period of time, we'd have one of the biggest funds."
💼 Leadership and Timeline
Treasury Secretary Scott Bessent and Commerce Secretary nominee Howard Lutnick are tasked with spearheading the fund's creation. Bessent aims to establish the fund within 12 months, stating, "We are going to monetize the asset side of the U.S. balance sheet for the American people." The fund's specifics, including its funding sources and structure, remain unclear and will require congressional approval.
🌐 Sovereign Wealth Funds Worldwide
Over 100 countries, including China, Saudi Arabia, and the UAE, have sovereign wealth funds. These funds invest in various sectors to generate national revenue. In the U.S., 20 states have such funds; Alaska's is the largest, valued at over $80 billion in 2024. The federal government has not previously established a national sovereign wealth fund.
📱 TikTok's Uncertain Future
TikTok has about 170 million American users. A law required ByteDance to sell TikTok by January 19, 2025, due to national security concerns. President Trump delayed this ban by 75 days through an executive order. He mentioned that the new fund could facilitate TikTok's acquisition, stating, "We're going to be doing something perhaps with TikTok, perhaps not." The app's future in the U.S. remains uncertain as discussions continue.
Should the U.S. government use a sovereign wealth fund to acquire companies like TikTok?
