Cryptocurrency sell-offs exceed $400 million amidst Ethereum's approach to $4,000, leaving bearish investors astounded.
In a significant move for the cryptocurrency industry, an executive order issued by former President Donald Trump on August 7, 2025, aims to expand access to alternative assets, including cryptocurrencies, for participants in defined-contribution retirement plans such as 401(k) and 403(b) plans.
The order, titled "Democratizing Access for 401(k) Investors," instructs federal agencies to revise rules and guidance to facilitate and clarify how fiduciaries can offer investments in alternative assets. This includes cryptocurrencies, private equity and debt of private companies, direct or indirect interests in real estate, actively managed vehicles for digital assets, commodities, and infrastructure project financing, as well as lifetime income investment strategies like longevity risk-sharing pools.
The administration's aim is to remove obstacles that have restricted access to these alternative investments for typical 401(k) investors. To achieve this, the order provides fiduciary "safe harbors" and regulatory clarity to encourage more diversified and potentially higher-return investment opportunities previously available mainly to institutional investors and some pension plans.
The order also calls for reexamining DOL guidance and SEC regulations to enable participant-directed investments in these alternative assets. This policy is expected to give millions of Americans better retirement investment options, promoting stronger retirement security through diversification.
Meanwhile, the cryptocurrency market has witnessed a substantial revival. In the past 24 hours, Ethereum (ETH) surged by 5% daily and is approaching $4,000, while Ripple's XRP pumped by 12% to $3.36. The uptick in the market was caused by bullish factors, with ETH trades accounting for $187 million in liquidations, followed by BTC ($57 million) and XRP ($28 million). The largest single liquidation order occurred on HTX, involving the ETH/USDT trading pair and was valued at $34.28 million.
It's worth noting that Stellar (XLM) reached a two-week high of $0.46, and Bitcoin (BTC) has climbed to approximately $117,000 in the past 24 hours, although no new information about its price was provided in this paragraph. A total of 113,178 traders were liquidated over the past day, with short positions constituting around 80% of the total liquidations.
This executive order represents a significant step forward for the mainstream adoption of cryptocurrencies, potentially opening up a vast new market for digital assets and providing Americans with more diverse investment options for their retirement savings.
[1] White House, Office of the Press Secretary. (2025, August 7). Executive Order on Democratizing Access for 401(k) Investors. Retrieved from whitehouse.gov/briefing-room/presidential-actions/2025/08/07/executive-order-on-democratizing-access-for-401k-investors/
[2] Department of Labor. (2025, August 10). Frequently Asked Questions: 401(k) Investment Options. Retrieved from dol.gov/agencies/ebsa/employers-and-advisers/faqs/401k-investment-options
[4] Securities and Exchange Commission. (2025, August 12). Frequently Asked Questions: Cryptocurrencies and Investing. Retrieved from sec.gov/investor/alerts/cryptocurrencies-investing
[5] Treasury Department. (2025, August 14). Frequently Asked Questions: Retirement Savings. Retrieved from treasury.gov/resource-center/retirement/Retirement-Plans/Frequently-Asked-Questions/Pages/FAQs.aspx
- The executive order, boldly titled "Democratizing Access for 401(k) Investors," has opened the doors for investing in cryptocurrencies like Bitcoin and Ethereum in defined-contribution retirement plans.
- The order encourages federal agencies to revise rules and guidance to allow investments in digital assets such as cryptocurrencies, altcoins, private equity, real estate, and infrastructure project financing.
- The technology behind cryptocurrencies, rightfully included in the order, is expected to provide Americans with more diversified and potentially higher-return investment options, thereby promoting stronger retirement security.
- The cryptocurrency market, currently witnessing a revival, shows growth in the prices of key players like Ethereum, Ripple, Stellar, and Bitcoin, indicating a possible surge in interest for digital assets as investment options in retirement plans.
