Major cryptocurrencies and crypto-related stocks were rallying early Thursday ahead of President Trump’s expected signing of an executive order that would allow alternative assets like cryptocurrencies and private equity into the retirement accounts of millions of Americans.
Bitcoin (BTC-USD) rose more than 2% near 9:00 a.m. ET on Thursday, while ether (ETH-USD) and XRP (XRP-USD) were both up more than 4%. Shares of Coinbase (COIN), the biggest publicly-traded crypto exchange, were up as much as 3%. Robinhood (HOOD) and Strategy (MSTR) shares each rose more than 1.5%.
President Trump’s executive order, expected to be signed around 12:00 p.m. ET on Thursday according to Reuters, will direct the Securities and Exchange Commission (SEC) to facilitate the use of alternative assets in 401(k)s and other retirement accounts.
The order would mark a major shift in retirement investments, opening up the traditionally staid industry to more speculative and sometimes illiquid investments. Typically, most 401(k) participants are offered a mix of stock or bond funds or index products in which to invest.
Large-scale alternative assets firms, including BlackRock and KKR, have expressed support for the move, which would open up the multi-trillion dollar retirement account industry to a broader mix of the funds these firms manage.
“Private assets like real estate and infrastructure can lift returns and protect investors during market downturns,” BlackRock chairman Larry Fink wrote in his latest annual investor letter.
“We need to make it clear: Private assets are legal in retirement accounts. They’re beneficial. And they’re becoming increasingly transparent.”
The executive order builds on recent crypto momentum in Washington coming off Congress’ “Crypto Week” in July, where the two chambers worked to get the CLARITY, GENIUS and Anti-CBDC Acts past their respective votes.
The GENIUS Act, signed into law by President Trump on July 18, establishes a regulatory framework for the use of stablecoins like Tether.
The CLARITY Act, which seeks to define regulatory oversight of cryptocurrencies, and the Anti-CBDC Surveillance State Act, which seeks to block the Federal Reserve from establishing central bank cryptocurrencies, have both passed in the House of Representatives and are now awaiting votes in the Senate.
Jake Conley is a breaking news reporter covering US equities for Yahoo Finance. Follow him on X at @byjakeconley or email him at [email protected].
