Trump allows crypto and real estate in 401(k)s as PolitiFi tokens gain $86M

Cryptocurrencies experienced a positive trend on Thursday as favorable news contributed to an upward movement in prices. The market was particularly influenced by the potential inclusion of digital assets in retirement accounts, which has sparked significant interest among investors.

The United States President is expected to sign an executive order that could pave the way for 401(k) retirement accounts to include a broader range of investment options, such as cryptocurrencies, private equity, and real estate. This development has generated excitement across the financial sector, with many viewing it as a major step toward mainstream acceptance of digital currencies.

Digital tokens reacted positively to the news, with altcoins showing substantial gains. Ethereum maintained a price above $3,800, while XRP saw a 5% increase, reclaiming the critical $3 level. Political-themed tokens also gained attention, with TRUMP, PEOPLE, BODEN, and SBR recording up to 20% increases on their daily price charts. These tokens, part of the PolitiFi segment, added over $86 million in value within a single day.

According to Coingecko data, the market capitalization of PolitiFi tokens rose by 4.1% in the past day, increasing from $2,023,407,897 to $2,109,914,386. Additionally, the daily trading volume reached $261.26 million, indicating strong investor activity in these assets. PolitiFi coins are designed to align with specific ideologies or political sentiments, and they have gained traction recently, especially following the election of a pro-crypto president in the United States.

Improved sentiment in the crypto space is driven by the anticipation of Trump’s 401(k) onboarding, which is seen as a catalyst for continued growth. A single stroke of the pen could unlock the $12.5 trillion retirement market, expanding beyond traditional stocks and bonds.

Understanding the Executive Order

The executive order encourages the Department of Labor to reevaluate outdated models that have restricted how 401(k) managers explore alternative investments. Currently, fund managers are instructed to balance “reasonable risk and reasonable price.” However, these policies do not address how they can interact with emerging asset classes like cryptocurrency.

Today’s executive order aims to change this by prompting the Department of Labor to collaborate with the SEC and Treasury to develop comprehensive standards. Potential areas of focus include:

• How to measure volatility and risks in multi-asset funds?
• What percentage of the retirement portfolio could be allocated to private equity or crypto?
• Suitability benchmarks based on technical and historical data.

The goal is to create a financial framework that supports innovation without stifling progress. This move is seen as a significant opportunity for the crypto industry, as shifting the $12.5 trillion 401(k) market toward digital tokens could lead to long-term, sustained inflows that enhance liquidity and price stability.

The timing is particularly favorable, as cryptocurrencies are witnessing increased institutional adoption through products like ETFs and treasuries. Companies like SharpLink have also shown confidence in the industry by doubling down on crypto purchases.

This executive order could serve as the catalyst that brings digital coins into the mainstream. Traditional investors who have been hesitant due to concerns about volatility may consider joining the movement once they see cryptocurrencies included in diversified, regulated retirement plans.