Trump's directive paves the way for alternative asset managers to gain a larger share of the vast American retirement savings market. The directive will also make it easier for investors to access alternative assets in their defined contribution retirement plans.
Trump stated that excessive regulation and litigation risks have hindered retirees from achieving potentially higher returns on their investments. However, critics warn that investments in alternative assets are inherently riskier, making them less suitable for long-term stability.
Trump's directive aligns with his pro-cryptocurrency stance, which has led to the passage of several cryptocurrency regulatory bills earlier this year.
The prospect of increased capital inflow has pushed Bitcoin upward, helping the cryptocurrency break out of the trading range of $110,000 - $115,000 observed since the end of July.
However, a more significant rise in the cryptocurrency remains elusive, especially considering that spot Bitcoin ETFs have experienced four days of sharp capital outflows. Bitcoin faced profit-taking after reaching record highs in July, and a gloomy risk appetite due to concerns over Trump's tariffs also kept buyers at bay.
The article is made with the support of investing.com$BTC