Crypto Stocks Surge as Trump’s Executive Order Opens 401(k) Plans to Alternative Assets

Crypto stocks are rallying strong this Thursday as Bitcoin, Ether, and other crypto-related assets surged ahead of an executive order from President Trump that is set to open 401(k) retirement plans to alternative investments, including cryptocurrencies. With Bitcoin surpassing $116,000 and major stocks like Coinbase (COIN) and Robinhood (HOOD) experiencing notable gains, the crypto market is welcoming the optimism. This move signals a significant shift in how investors could approach retirement savings and opens the door for more speculative and high-risk assets in retirement portfolios.

As the broader financial world digests the implications of this shift, crypto-related stocks are benefiting from the increased legitimacy that could come with mainstream adoption in retirement accounts. The news comes on the heels of significant crypto momentum in Washington, following a series of legislative efforts in Congress to regulate the growing sector.

​Crypto Stocks:

• ​Bitcoin (BTC-USD): +0.86%: Bitcoin saw an uptick of 0.86%, surpassing the $116,000 mark as investors speculated about the broader inclusion of cryptocurrencies in retirement portfolios. The prospect of cryptocurrencies being allowed in 401(k) accounts has fueled a new wave of interest from institutional and retail investors alike.
• Coinbase (COIN): +2.25%: Shares of Coinbase, the largest publicly traded crypto exchange, jumped 2.25% amid positive sentiment surrounding the expected executive order. As the primary platform for crypto trading in the US, Coinbase stands to benefit from increased retail and institutional investments into cryptocurrencies, especially as they become more accessible in retirement accounts.
• Robinhood (HOOD): +3.98%” Robinhood rose by nearly 4%, reflecting the growing interest in crypto assets. As a platform that caters to retail investors, Robinhood stands to gain from the increased exposure to cryptocurrencies, especially if the regulatory environment continues to evolve favorably.
• Strategy (MSTR): +1.53%: MicroStrategy, a business intelligence firm with large Bitcoin holdings, saw its stock rise by 1.53%. The company's exposure to Bitcoin through its treasury reserve strategy makes it a key player in the crypto stock market, and this new regulatory environment could lead to a boost in institutional interest.
• XRP (XRP-USD): +1.59%: XRP, the cryptocurrency backed by Ripple, gained 1.59% as the market overall benefited from renewed interest in crypto assets. XRP’s growth has been fueled by ongoing regulatory efforts and broader crypto adoption, particularly in the wake of favorable US legislation.

​Trump’s Executive Order: Opening the Door to Alternative Assets

​The major catalyst for today’s rally is Trump’s executive order, set to be signed on Thursday, which aims to allow alternative assets like cryptocurrencies, real estate, and private equity into 401(k) plans. Historically, retirement plans have been limited to stocks, bonds, and mutual funds. With this shift, cryptocurrencies will gain access to a multi-trillion-dollar industry, potentially driving significant new demand for digital assets.

This move also includes provisions for the Securities and Exchange Commission (SEC) to facilitate the inclusion of these alternative assets in retirement accounts. The impact of this policy could be felt in both the short and long term, as it provides a pathway for millions of Americans to directly invest in the growing crypto market through tax-advantaged accounts.

​The Broader Crypto Regulatory Push

​In addition to Trump’s executive order, there has been growing legislative momentum in Washington. The GENIUS Act, signed into law in July, established a framework for regulating stablecoins like Tether, while other bills, such as the Clarity Act and Anti-CBDC Surveillance State Act, continue to work their way through Congress. These efforts signal that the US is taking steps to regulate and legitimize cryptocurrencies, making the space more appealing to institutional investors.

Additionally, financial giants like BlackRock have expressed support for the integration of alternative assets in retirement accounts, including cryptocurrencies. Their endorsement highlights the increasing legitimacy of digital assets in mainstream finance.

​The Potential Impact on Institutional Investment

​The integration of crypto assets into 401(k) plans could bring about a wave of institutional investment. Large firms and financial institutions, which have so far been cautious about incorporating cryptocurrencies into their portfolios, may now see the benefits of adding Bitcoin and other digital assets to their long-term strategies. This shift could push crypto into the mainstream, drawing institutional investors who seek exposure to these emerging assets.

Looking Ahead

The crypto sector is poised for further growth as more regulations take shape and major players like Coinbase and Robinhood benefit from growing adoption. With Trump’s executive order opening the door for cryptocurrencies in retirement accounts, we can expect a surge in new retail and institutional investments. However, challenges remain. The regulatory landscape is still evolving, and there are concerns about volatility, liquidity, and the potential risks associated with speculative assets like crypto. As more investors get involved, it will be important to see how these challenges are addressed by regulators and how firms in the crypto space evolve to meet growing demand.