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- Senator Cynthia Lummis hints that Trump’s executive order on a U.S. sovereign wealth fund could signal government Bitcoin acquisitions.
- Wyoming Senator Lummis calls Trump’s latest EO a ‘big deal’ for Bitcoin, sparking speculation on U.S. BTC reserves and investment.
President Donald Trump’s new executive order (EO) establishing a U.S. sovereign wealth fund has ignited discussions about Bitcoin’s (BTC) role in national finance. While the EO does not mention digital assets, Wyoming Senator Cynthia Lummis, a known Bitcoin advocate, called it a “big deal” for BTC. Her remarks have fueled speculation that Bitcoin could become part of America’s investment portfolio.
As CNF reported, the executive order, signed on February 3, directs the Treasury and Commerce Departments to create a sovereign wealth fund. The goal is to “monetize the asset side of the U.S. balance sheet.” The fund may invest in natural resources, infrastructure, and key industries. However, its exact structure remains unclear. Lummis’ endorsement of the EO has raised questions about whether Bitcoin could be considered as part of this fund.
Lummis Calls Trump’s Sovereign Wealth Fund a ‘Big Deal’ for Bitcoin
Shortly after the executive order’s announcement, Senator Lummis posted on X (formerly Twitter) to highlight its significance. “This is a big deal for Bitcoin,” she wrote, suggesting that the sovereign wealth fund aligns with her long-standing push for the U.S. to hold Bitcoin as a reserve asset.
This is a ₿ig deal. https://t.co/ZShfQcEGwc
— Senator Cynthia Lummis (@SenLummis) February 3, 2025
Senator Cynthia Lummis has long advocated for Bitcoin as a strategic asset for the US government, pointing to its decentralization and fixed supply as advantages against inflation.
Lummis has even suggested the US Treasury convert some of its 8,000+ tons of gold holdings into Bitcoin to create a BTC reserve. Now, with the new sovereign wealth fund, she may see a new opportunity to push for Bitcoin to be included in government-held assets. Her latest comments mirror her past statements where she’s urged the US to “hold Bitcoin on its balance sheet” and recognize it as a long-term store of value.
Further fueling speculation, crypto advocate Wayne Vaughan pointed out that both Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick have expressed positive views on Bitcoin in the past. This has led to growing expectations that the sovereign wealth fund could eventually incorporate digital assets as part of its investment strategy.
Could the U.S. Government Be Preparing to Buy Bitcoin?
If the U.S. sovereign wealth fund allocates funds to Bitcoin, it would mark a major shift in investment strategy. Traditionally, sovereign wealth funds hold bonds, equities, gold, and real estate. These assets provide stability and long-term returns. Adding Bitcoin, a volatile digital asset, would be unprecedented.
Bitcoin offers unique benefits as a sovereign asset. Its fixed supply of 21 million coins makes it resistant to inflation, unlike fiat currencies. It also operates on a decentralized network, reducing geopolitical risks. Despite its volatility, Bitcoin has consistently outperformed traditional assets over the past decade.
El Salvador has already integrated Bitcoin into its national reserves. Though much smaller than the U.S., El Salvador’s experiment shows that governments can incorporate Bitcoin into financial strategies. If the U.S. follows suit, even partially, it could significantly boost global Bitcoin adoption.
Trump’s Pro-Crypto Administration Strengthens Speculation
President Trump’s view on cryptocurrency has shifted over time. Once skeptical, he now presents himself as a pro-crypto leader. His administration supports Bitcoin mining, opposes a central bank digital currency (CBDC), and aims to create clear crypto regulations. As CNF reported earlier on January 23, President Trump issued an executive order to form a crypto working group and to ban the CBDC, although it remains to be seen whether this order might encounter legal obstacles.
A key figure in Trump’s crypto strategy is David Sacks, recently appointed as the administration’s “Crypto Czar.” Sacks will oversee regulatory efforts and help the U.S. maintain competitiveness in the blockchain space.
Senator Lummis praised Sacks’ appointment, saying, “With David Sacks in charge, this will be the most pro-digital asset administration ever.” She also emphasized her commitment to working with him on comprehensive digital asset legislation and a national Bitcoin reserve.
With the sovereign wealth fund in development, the combination of a pro-Bitcoin administration, key financial leaders who support BTC, and Lummis’ advocacy increases the chances that Bitcoin will be considered.
Bitcoin’s Market Reaction and Global Implications
Bitcoin and other cryptocurrencies surged following Trump’s decision to delay new tariffs on Canada and Mexico. This move, coupled with buying activity, pushed Bitcoin’s price up 5.6% to $99,327.5. By Monday evening, BTC surpassed $100,000.
But there’s uncertainty as Bitcoin is still waiting on some executive orders to face legal challenges. Since January 20, Trump has signed multiple EOs, and some have been hit with lawsuits immediately.
Any move to buy Bitcoin through an executive order would likely spark similar political and regulatory fights in Congress. However, the conversation about Bitcoin in the US financial system is still gaining steam.
