Key Points
- Crypto and related stock prices rallied ahead of an expected executive order from President Trump.
- The order would make it easier to include assets like crypto and private equity in 401(k)s.
- This is a major potential shift for the traditionally conservative retirement industry.
- Large investment firms like BlackRock support the move, which could open up a huge new market for them.
Cryptocurrencies and related stocks rallied Thursday morning as investors got ready for President Trump to sign an executive order that could bring digital assets to millions of American retirement accounts.
Major cryptocurrencies like Bitcoin and Ethereum saw their prices jump, with Bitcoin rising over 2%. Shares of crypto-focused companies also got a boost, with crypto exchange Coinbase up as much as 3%.
The executive order, expected to be signed later today, will direct the Securities and Exchange Commission (SEC) to make it easier to include “alternative assets” like cryptocurrencies and private equity in 401(k)s and other retirement plans.
This would be a massive shift for the normally conservative retirement industry, which has traditionally focused on stocks and bonds. Opening up retirement accounts to these more speculative investments could funnel trillions of dollars into new asset classes.
The move is being championed by major investment firms like BlackRock and KKR, which manage large private asset funds. They argue that assets like real estate and infrastructure can boost returns and offer protection during market downturns.
This executive order is the latest in a series of pro-crypto moves from Washington. In July, Congress had a “Crypto Week” that saw progress on several key pieces of legislation. One of these, the GENIUS Act, which sets up a regulatory framework for stablecoins, was already signed into law by President Trump last month.
Other bills aimed at clarifying crypto regulations and blocking a potential U.S. central bank digital currency have passed the House and are now waiting for a vote in the Senate.
