Crypto Market Reacts to Trump's 401(k) Order

Major cryptocurrencies and related stocks experienced a surge early Thursday as anticipation grew surrounding President Trump's expected executive order. This order aims to broaden the scope of permissible investments within 401(k) retirement accounts to include alternative assets like cryptocurrencies and private equity.

• Bitcoin (BTC) saw gains exceeding 2%.
• Ether (ETH) and XRP both jumped by over 4%.
• Coinbase (COIN) shares rose as much as 3%.
• Robinhood (HOOD) and MicroStrategy (MSTR) shares each increased by more than 1.5%.

Executive Order Details

The executive order directs the Securities and Exchange Commission (SEC) to facilitate the inclusion of alternative assets in 401(k)s and other retirement savings plans. This marks a significant departure from the traditional investment options offered in retirement accounts, which primarily consist of stock funds, bond funds, and index products.

Larger alternative asset managers, such as BlackRock and KKR, have voiced their support for this initiative. They see it as an opportunity to introduce a wider range of funds under their management to the expansive multi-trillion dollar retirement account industry.

Key Takeaways

• President Trump's executive order could open 401(k)s to crypto and other alternative assets.
• The move has been welcomed by major alternative asset firms like BlackRock.
• Regulatory clarity remains a crucial factor for widespread adoption.

Regulatory Landscape

This executive order follows recent legislative activity in Washington, including the "Crypto Week" in Congress, where the CLARITY, GENIUS, and Anti-CBDC Acts were discussed and voted upon. The GENIUS Act, already signed into law, establishes a regulatory framework for stablecoins, while the CLARITY Act and the Anti-CBDC Surveillance State Act await Senate votes.