Could President Trump’s proposed U.S. sovereign wealth fund solve the TikTok problem – offering a way to divest its ownership and address national security concerns?

How it might play out: The great social media disruptor needs new owners, and Trump has postulated that his embryonic SWF may fit the bill. If TikTok were to become one of the strategic investments owned by the fund, it could ensure the platform’s data and operations were controlled domestically, thereby alleviating fears of foreign influence and data security risks.

But it’s complicated: Vesting ownership of TikTok to the SWF would present several challenges and potential drawbacks:

• Legal and Constitutional Challenges: Government ownership of a social media platform could raise First Amendment concerns, particularly regarding content moderation and free speech rights. Legal analysts warn that such an arrangement might lead to complex constitutional issues and potential litigation.

• Operational and Logistical Complexities: Managing a social media platform requires specialized expertise. The government may face challenges in effectively overseeing TikTok's operations, including content moderation, data privacy, and algorithm management.

• International Relations and Trade Concerns: Such an acquisition could strain diplomatic relations, particularly with China, and lead to retaliatory measures.

Early days: Setting up a U.S. sovereign wealth fund requires legislative approval, securing funding, and establishing governance structures—all of which take time. Given TikTok’s looming divestiture deadline, these delays could prevent the fund from being operational in time to purchase TikTok before a potential ban or forced sale occurs.