Robinhood Stock (Hood) stock trades higher on Thursday following the latest prosCrypto Presidential Order President Donald Trump signed it. Trump today approved a new bill that allows for a 401(k) savings plan that allows for the inclusion of cryptocurrency and digital assets. Major cryptocurrencies and crypto stocks were gathering early in the announcement, including Bitcoin and other top coins.
Robinhood (Hood), Coinbase (Coin), Strategy (MSTR) and other crypto-centric stocks closed on Thursday.
Details of the new 401(k) Crypto Bill
The latest Trump Executive Order directs the Securities and Exchange Commission (SEC) to promote the use of alternative assets in other retirement accounts, including 401(k) plans and crypto. Traditionally, most 401(k) participants are offered stock or bond funds to invest in, or a combination of index products. However, with the digital asset industry explosion over the last few years, many investors have been looking to expand their portfolios with crypto.
The U.S. Labor Bureau is tasked with clarifying the federal government’s position to allow private allocation of funds via cryptography in its 401(k) retirement plan. It also includes alternative possessions that become part of the executive order. The development comes after Trump held “Crypto Week” at the White House in early August.
“Private assets such as real estate and infrastructure can lift returns and protect investors during market slump,” BlackRock Chairman Larry Fink wrote in his latest annual investor letter. “We need to make that clear. Private assets are legal in retirement accounts. They are beneficial. And they are becoming more and more transparent.” BlackRock has been a huge success in offering Spot Crypto ETFs over the past year, pending applications for additional Crypto ETFs.
Since returning to the White House, President Trump has signed numerous custody bills. Recently, he signed the first ever federal law to regulate stablecoins passed by Genesis. All stubcoins are locked in the US dollar at a 1:1 ratio, leading the digital asset market into a new financial era. Additionally, Trump also directs Labor Secretary Lori Chavez-Dereme to promote crypto access in his 401(k) retirement plan.
