US Treasury Secretary Scott Bessent announced the suspension of the sovereign wealth fund initiative proposed by President Donald Trump. This fund could invest in cryptocurrencies, including Bitcoin.
Sovereign Wealth Fund Plan on Hold
Scott Bessent stated, "the sovereign wealth fund plan is on hold until we deal with all other issues." The government's changing priorities have led to the suspension of work on the fund.
Criticism and Controversies Surrounding the Fund
The establishment of the sovereign wealth fund has sparked numerous debates among economists. Renowned economist Peter Schiff called the plan "absurd" and "unconstitutional." Robeco's Colin Graham argued that such a fund is not economically sustainable due to the high level of US national debt ($36.22 trillion). Critics say that creating the fund is a misplaced financial priority for a country with no national savings.
Expected Trade Deals
Bessent also announced that several major trade deals are expected to be completed in the coming weeks, further highlighting the volatility of the economic situation in the country.
Thus, despite ambitious plans, the establishment of the sovereign wealth fund remains uncertain as the government focuses on more immediate priorities.
