Investors are waiting for Trump to allow pension funds to buy crypto. Who will win?

US President Donald Trump intends to sign an executive order that will allow pension funds to invest in alternative assets, including cryptocurrencies, Reuters reports. Against this background, cryptocurrency and shares of related companies, such as Coinbase, Robinhood and Strategy, rose in price on August 7.

- On Thursday, bitcoin rose at about 1.4% at the moment, Ethereum was up 5.3%, and the third most-capitalized cryptocurrency XRP was up 2.3%.

- Shares of Strategy (formerly MicroStrategy), the largest corporate bitcoin holder, were up 5.4%.

- Quotes of crypto exchange Coinbase jumped by 4.2%, and trading platform Robinhood - by 6.3%.

- In contrast, shares of stebliccoin issuer USDC Circle collapsed 5.1%.

Investors are waiting for the U.S. president to sign an executive order that will allow U.S. pension funds to invest in alternative assets: private companies, real estate and cryptocurrencies. According to data from Reuters, the executive order could be signed as early as August 7.

"The executive order directs the Securities and Exchange Commission (SEC) to simplify access to alternative assets for participants in defined-contribution retirement savings plans (defined-contribution plans) by amending relevant regulations and clarifications," a White House official, whose name was not disclosed, told the agency.

Such a move could be a powerful incentive for large alternative asset managers such as Blackstone, KKR and Apollo Global Management as it would open them up to the $12 trillion retirement savings market, reports Reuters.

But critics point out that Americans' retirement savings could end up in more speculative and illiquid assets. Typically, participants in voluntary retirement plans under Section 401(k) of the U.S. Internal Revenue Code are offered a standard choice of stock funds, bonds and index products, explains Yahoo Finance. In addition, investments in alternative assets are more likely to come with higher fees, Reuters emphasizes.

"Private assets, such as real estate and infrastructure, can enhance returns and protect investors during market downturns," BlackRock Chairman Larry Fink wrote in his annual letter to shareholders, which is quoted by Yahoo Finance. - We need to be clear: Private assets are permissible in retirement accounts. They are useful. And are becoming increasingly transparent."

Many private equity funds are in dire need of new sources of capital from retail investors, especially after three years of high interest rates that have undermined the classic model of buying out and reselling companies at a profit, Reuters writes.

With Trump's arrival in the White House, the legalization of cryptocurrencies has begun in the United States, and the SEC, which previously harassed cryptocurrency companies, has become more loyal to digital assets. In July, Congress held the so-called "Crypto Week," during which the House and Senate worked to pass three key pieces of legislation - CLARITY, GENIUS and the Anti-CBDC Surveillance State Act.

The GENIUS Act signed by Trump on July 18 laid the legal groundwork for the use of stablecoins such as Tether (USDT) and Circle (USDC). The CLARITY Act, which aims to define the regulatory boundaries of the cryptocurrency industry, and the Anti-CBDC Act, which blocks the Fed from launching a digital dollar, have already passed a vote in the House of Representatives and await consideration in the Senate.

After the inauguration of Trump, who promised in his campaign program to "make the U.S. the cryptocurrency capital of the world," bitcoin updated its high several times. On July 13, it reached $123,091 and is now trading 5% below its July high.

This article was AI-translated and verified by a human editor