On a day full of developments that could reshape the future of the cryptocurrency market, U.S. President Donald Trump announced a historic move that opens the door for retirement investments in crypto assets, coinciding with the conclusion of one of the longest legal battles in the sector between Ripple and the U.S. Securities and Exchange Commission (SEC).
Presidential decision opens retirement investments to cryptocurrencies
On Thursday, Trump signed an executive order directing the U.S. Department of Labor to review restrictions preventing the inclusion of alternative assets — such as cryptocurrencies, real estate, and private equity — in retirement plans known as 401(k) and defined contribution plans.
The decision opens the door to a potential influx of billions of dollars into the cryptocurrency markets, where retirement assets in the United States are estimated at over $43.4 trillion, including $8.7 trillion in 401(k) accounts.
Market experts believe that this move could be a major turning point. Matt Hogan, Chief Investment Officer at Bitwise, stated that the decision will create 'consistent and stable demand' for cryptocurrencies from retiring investors. Joshua Kruger from dEURO predicted that Bitcoin will be the biggest beneficiary in the short term due to its broad institutional acceptance.
End of the legal battle between Ripple and the SEC
In a significant legal development, the U.S. court announced its acceptance of both Ripple and SEC's request to halt the mutual appeals in the case surrounding the XRP currency, which means the end of the legal battle that began in 2020.
Thus, the ruling issued in July 2023 becomes final, confirming that XRP traded in public markets is not considered a security. The court also ordered Ripple to pay a fine of $125 million, after both parties failed to reduce it.