President Trump plans to visit Saudi Arabia to finalize a $1 trillion investment deal in the US economy, including military equipment purchases. Simultaneously, he has signed an executive order to create a strategic bitcoin reserve. Both initiatives raise questions regarding ethical implications and the regulatory landscape of cryptocurrencies.
On Thursday, United States President Donald Trump announced plans for his inaugural trip abroad to Saudi Arabia, intending to finalize a substantial agreement wherein Riyadh would invest over $1 trillion into the US economy. This investment would encompass military equipment purchases as well. Trump stated he anticipates traveling to Saudi Arabia in the next six weeks, recalling his 2017 visit where he unveiled a previously projected $350 billion investment from the kingdom.
Trump remarked, “This time, they’ve gotten richer, we’ve all gotten older,” emphasizing the enhanced financial capacity of Saudi Arabia. He noted that the Saudi government is prepared to invest this considerable amount over the span of four years in American enterprises due to his encouragement, underlining his positive relationship with the Saudi leadership.
Increasingly, Saudi Arabia is playing a significant role in US foreign policy. Trump’s Middle East special envoy, Steve Witkoff, revealed that the kingdom will be hosting a meeting next week regarding a ceasefire in the ongoing Ukraine conflict. Additionally, Trump has engaged with both PGA Tour representatives and those from LIV Golf, which is owned by Saudi interests, to remedy tensions between the two organizations.
In a related context, Trump’s son-in-law, Jared Kushner, established a private equity firm that secured a $2 billion investment from Saudi Arabia following Trump’s tenure. Recently, Trump has also disclosed various major investments from other firms, including Taiwan Semiconductor Manufacturing and Apple, showcasing a surge in interest to invest in the US economy.
Furthermore, President Trump has signed an executive order to create a strategic bitcoin reserve, coinciding with a meeting involving cryptocurrency executives at the White House. This reserve is set to incorporate bitcoin and other cryptocurrencies seized by the government through legal processes, as stated by David Sacks, the White House’s cryptocurrency czar.
The strategic reserve aims to establish a treasury of digital assets, including bitcoin, ether, XRP, solana, and cardano as their inclusion was previously announced by Trump. Uncertainty remains regarding the operational aspects and benefits of this reserve for taxpayers. Sacks emphasized, “The US will not sell any bitcoin deposited into the reserve,” suggesting that it would be maintained as a stored value.
Trump’s directive tasked the Treasury and Commerce Secretaries to formulate “budget-neutral strategies” for the acquisition of additional bitcoin without resulting in any taxpayer expenditures. Moreover, a “US Digital Asset Stockpile” will be formed, yet it will not expand beyond what is acquired through asset forfeiture.
Following the public announcement, bitcoin’s value briefly dropped more than 5 percent, falling below $85,000 before stabilizing around $88,109. Charles Edwards, the founder of Capriole Investments, expressed his dissatisfaction, describing it as “the most underwhelming and disappointing outcome we could have expected for this week.”
Despite support from Trump’s administration for the cryptocurrency sector, concerns regarding potential conflicts of interest and the fairness of tax advantages for affluent investors have surfaced, particularly among conservative circles. Trump’s endeavors to engage with the crypto industry represent a potential boon for taxpayers by allowing them to benefit from rising cryptocurrency values. Sacks noted the government holds approximately 200,000 bitcoin, estimating that prior untimely sales have led to a $17 billion loss for taxpayers.
Ethical considerations have arisen regarding Trump’s support for the cryptocurrency market, given that his family has launched meme coins and he has interests in a crypto platform. Despite these concerns, aides indicate that Trump has delegated control of his business affairs to external ethics consultants to ensure compliance with regulatory standards.
In conclusion, President Trump’s upcoming visit to Saudi Arabia is focused on securing a significant investment deal, potentially exceeding $1 trillion for the US economy, particularly in military purchases. Concurrently, his establishment of a strategic bitcoin reserve reflects his administration’s commitment to cryptocurrency, despite raising ethical questions. These developments illustrate Saudi Arabia’s increasing involvement in US foreign policy and Trump’s enduring influence on the economic landscape.
Original Source: www.dawn.com
