US president Donald Trump recently signed an executive order directing the creation of a sovereign wealth fund within the next year, suggesting it could be used to acquire the short video app TikTok. The move signals a renewed interest in securing the app, which has about 170 million American users and has been under scrutiny over national security concerns.
The executive order provides few details but instructs the US Treasury and Commerce Departments to submit a plan within 90 days, outlining funding sources, investment strategies, structure and governance. Treasury secretary Scott Bessent confirmed plans to establish the fund within 12 months, describing it as a way to leverage US assets for public benefit.
Traditionally, sovereign wealth funds are supported by national budget surpluses, but the country operates at a deficit, making congressional approval likely necessary. While the administration has not clarified how the fund would be financed, Trump has mentioned potential sources such as tariffs.
In a surprising move, Trump suggested that the proposed wealth fund could be used to purchase TikTok. As you may recall, a law requiring its owner ByteDance to sell the platform or face a ban took effect on 19 January 2025, though the US president delayed its enforcement by 75 days shortly after his inauguration.
“We’re going to be doing something, perhaps with TikTok, and perhaps not,” he said. “If we make the right deal, we’ll do it. Otherwise, we won’t…we might put that in the sovereign wealth fund.”
Trump stated that discussions were ongoing and a decision could be made in February, leaving open the possibility of integrating TikTok into the sovereign wealth fund’s portfolio. The acquisition of TikTok by the US government would mark an unprecedented move in digital policy, potentially reshaping the landscape of social media ownership and regulation.
(Source: Reuters)
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