Trump Opens Door for Crypto in Retirement Plans

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Bitcoin inched higher on Friday, extending recent gains after U.S. President Donald Trump signed an executive order allowing a broader range of alternative assets, including cryptocurrencies, to be used in 401(k) retirement accounts. While the move was welcomed by crypto advocates, overall market sentiment stayed cautious amid global trade tensions.

The order gives alternative asset managers greater access to America’s vast retirement savings market, making it easier for individuals to diversify their defined contribution plans. President Trump said that heavy-handed regulations and the threat of litigation had denied retirees opportunities for potentially higher returns. Critics countered that alternative assets such as cryptocurrency are often more volatile, which could present challenges for long-term stability.

This policy is in line with Trump’s pro-crypto approach, which earlier this year saw the passage of several measures designed to simplify digital asset regulations. The announcement helped Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization, break out of its recent $110,000–$115,000 range. By 09:30 Eastern Time (ET) or 13:30 Greenwich Mean Time (GMT), Bitcoin had edged up 0.1% to $116,890. Gains, however, were restrained by profit-taking and investor concerns over new U.S. trade tariffs.

Altcoins, short for alternative cryptocurrencies, saw stronger moves. Ether (ETH), the second-largest crypto asset, rose 2% to $3,910.76, putting it within sight of its 2021 high of over $4,000. Analysts attributed the rise to more companies adding Ether to their corporate treasuries, mirroring a strategy made famous by Michael Saylor’s MicroStrategy, which has seen substantial share price growth from heavy Bitcoin accumulation.

XRP, the token issued by Ripple Labs, jumped 8.4% to $3.32 after Ripple and the U.S. Securities and Exchange Commission (SEC) agreed to end their years-long legal battle. The outcome was widely expected after Trump appointed more crypto-friendly officials to the SEC and reassigned certain oversight duties to the Commodity Futures Trading Commission (CFTC).

Other digital assets also gained ground.  Solana (SOL) rose 2.6%, Cardano (ADA) climbed 3%, Dogecoin (DOGE) gained 4.1%, and the $TRUMP token added 2.3%.

In the corporate arena, Jack Dorsey’s Block (NYSE: SQ) expanded its Bitcoin holdings in the second quarter, purchasing an additional 108 BTC and bringing its total reserves to 8,692 BTC. According to its latest 10-Q filing with the SEC, Block reported Q2 revenue of $6.05 billion, up 1.5% from the previous quarter, while gross profit rose 8.2% to $2.54 billion. Bitcoin sales via Cash App generated $2.14 billion in revenue and $66 million in gross profit. Shares of Block rose 3.5% at Friday’s market open on the upbeat results.

While the executive order marks another milestone in integrating cryptocurrency into mainstream finance, investors remain wary. With trade tariffs taking effect and global uncertainty persisting, market enthusiasm could be tested in the months ahead. Still, Trump’s move is a significant step toward making digital assets a more common feature of America’s retirement planning.