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Cryptocurrencies traded in green on Thursday as optimistic news fueled uptrends.
According to Bloomberg, the United States President is set to sign an executive order in Washington today.
The move has stirred markets as it clears the path for 401 (k) retirement accounts to different investment alternatives, including cryptocurrencies, private equity, and real estate.
JUST IN: 🇺🇸 President Trump to sign an executive order Thursday that aims to allow #Bitcoin and crypto to 401(k)s: Bloomberg
Digital tokens reacted to the news with optimistic price actions, with altcoins recording substantial gains.
Ethereum holds above $3,800 as XRP reclaims the crucial $3 after a 5% jump.
Meanwhile, political-themed tokens have attracted attention with impressive gains.
TRUMP, PEOPLE, BODEN, and SBR have gained up to 20% on their daily price charts.
The rallies have seen the segment adding over $86 million in the past day.
Coingecko data shows the market cap of PolitiFi tokens increased by 4.1% in the past day from $2,023,407,897 to press time’s $2,109,914,386.
Moreover, the $261.26 million daily trading volume signals significant trader and investor activity in these assets.
Source – CoingeckoPolitiFi coins align with specific ideologies or political sentiments.
They have been on investor radar lately, especially after the United States voted for a pro-crypto president.
Improved sentiments as digital asset enthusiasts brace for Trump’s 401 (k) onboarding fuel the ongoing gains in the crypto space.
A stroke of a pen would unlock the whopping $12.5 trillion retirement market beyond stocks and bonds.
Understanding the executive order
The order urges the Department of Labor to reevaluate outdated models that have limited how 401 (k) managers explore alternative investments.
The existing system instructs fund managers to strike a balance between “reasonable risk and reasonable price.”
However, these policies do not highlight how they can interact with evolving asset classes like cryptocurrency.
Today’s executive order will change that.
The Department will collaborate with the SEC and Treasury to develop comprehensive standards, possibly addressing factors like:
- How to measure volatility and risks in multi-asset funds?
- What percentage of the retirement portfolio could comprise private equity or crypto?
- Suitability benchmarks based on technical and historical data.
Precisely, the move aims to provide a financial structure that does not stifle innovation.
What does it mean for digital currencies?
The implications for the crypto industry are immense.
Shifting the $12.5 trillion 401(k) market toward digital tokens will unlock long-term, sustained inflows that bolster liquidity and price stability.
The timing could not be better.
Cryptocurrencies are experiencing increased institutional adoption through products like ETFs and treasuries.
Moreover, firms like SharpLink have doubled down on crypto purchases, displaying trust in the industry.
Today’s executive order might be the catalyst that sends digital coins mainstream.
Traditional investors who remain skeptical about cryptocurrencies due to volatility might join the bandwagon once they see them included in diversified, regulated retirement plans.
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