President Donald Trump signed an executive order to establish a U.S. sovereign wealth fund. This fund may acquire TikTok, the widely used social media platform with millions of American users.
The order instructs the Treasury and Commerce Departments to create a strategy within 90 days. This plan will cover funding sources, investment methods, and operational guidelines. Officials expect the fund to be set up within a year.
Sovereign wealth funds usually operate with surplus funds, but the U.S. runs on a deficit. Therefore, congressional approval is necessary to secure financing. Trump has proposed using revenue from tariffs to support the fund.
The move came as a surprise, as the U.S. has never operated such a fund before. Globally, more than 90 sovereign wealth funds manage over $8 trillion in assets. Experts believe the initiative will require significant legislative backing.
This development follows rising concerns over TikTok’s ownership. A recent law mandated that TikTok’s parent company must sell the app by a specific deadline due to national security risks. The ruling was upheld, briefly taking TikTok offline.
Trump, upon assuming office, issued an executive order delaying the enforcement of the law by 75 days. He has engaged in discussions with various stakeholders regarding TikTok’s future. A final decision is expected soon.
The new sovereign wealth fund could enable the U.S. government to acquire TikTok, keeping it operational for users. This plan seeks to address security concerns while maintaining access to the popular platform.
This move signals a major shift in U.S. economic and technology policies. It highlights ongoing efforts to balance national security with technological advancements. The outcome will significantly impact the future of digital platforms in the country.
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