Trump Executive Order Unleashes Crypto Rally, Opens $12.2 Trillion 401(k) Market
Trump Executive Order Unleashes Crypto Rally, Opens $12.2 Trillion 401(k) Market
U.S. President Donald Trump has signed a landmark executive order this week, poised to significantly open up 401(k) retirement accounts to alternative assets, including cryptocurrencies like Bitcoin, Ethereum, and XRP. This move could unlock a portion of the combined $12.2 trillion held in these retirement plans for digital asset investments, marking a pivotal moment for mainstream crypto adoption.
The announcement has already ignited a strong rally across the crypto market. Bitcoin surged towards $120,000, its highest point since last month, while Ethereum jumped 21% this week, breaking back above $4,000 for the first time since December. XRP, a top performer over the past year, also climbed 12%, contributing to the combined crypto market valuation surpassing $4 trillion.
Industry experts are hailing the order as a major step forward. Antony Agoshkov, cofounder of Marvel Capital, noted its potential to integrate digital assets into mainstream financial infrastructure, facilitating long-term adoption by everyday Americans. Katalin Tischhauser, head of research at Sygnum Bank, highlighted it as a bullish driver, given the relatively small market capitalization of crypto, where significant fund flows can have a pronounced price impact.
The executive order directs the Department of Labor to review existing rules over the next 180 days, with changes not expected to take immediate effect in the markets. This follows the Department of Labor’s decision in May to revoke its 2022 guidance that previously urged “extreme care” regarding crypto in retirement accounts, signaling a more favorable regulatory environment taking shape in Washington.
Matt Hougan, chief investment officer at Bitwise, emphasized that the order is less about government endorsement and more about empowering individuals to make their own investment decisions. This latest action by the Trump administration, alongside other initiatives aimed at fostering a clearer regulatory landscape for digital assets, is expected to further shift sentiment among investors and accelerate the integration of cryptocurrencies into traditional financial systems.
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