Trump To Approve Crypto in 401(k) Retirement Plans

President Donald Trump will sign an executive order authorizing cryptocurrency, private equity, and alternative assets inside American 401(k) retirement accounts. The directive instructs the Labor Department to rewrite ERISA guidance and coordinate with the Treasury and SEC on enabling digital asset inclusion.

The policy targets approximately $12+ trillion in defined-contribution plans, potentially unlocking unprecedented flows of retirement capital into BTC and ETH. The SEC is directed to ease investor access, clearing the way for direct holdings beyond ETFs currently available in retirement portfolios.

Crypto markets reacted favorably, with Ethereum shooting up 7.3% to $3,856 and liquidating $126 million in short positions within twenty-four hours. Solana, XRP, and Cardano posted gains of 4.9%, 4.1%, and 5.7% respectively, reversing recent market softness triggered by trade war concerns.

Decentralized prediction markets now price Solana at a 30.5% probability of reaching a new all-time high before year-end. Broader digital asset capitalization climbed 2.9% on the day, with niche tokens like Pudgy Penguins’ PENGU surging over 13% amid speculative optimism.

World Liberty Plans Points Program for USD1 Users

World Liberty Financial announced a points-based loyalty program for users who hold, trade, or stake its USD1 stablecoin through supported exchanges. The firm said points will be earned through wallet activity, DeFi integrations, and use of its app, similar to airline or hotel rewards. Gate Exchange will be the first launch partner, offering bonus points for USD1 trades using limit orders.

The stablecoin issuer claims USD1 is fully backed by cash, short-term treasuries, and other dollar equivalents under BitGo Trust custody. World Liberty's plan is clear: grab a share of the USD-backed stablecoins market that just crossed $250 billion in circulation. While the Trump family’s involvement boosts visibility, it has raised questions about conflicts of interest due to their official advocacy roles in the project.

China Eyes Stablecoins Citing Capital Outflow Risks

China is exploring stablecoin issuance via Hong Kong under strict oversight, aiming to promote international use of the renminbi and challenge US dollar dominance. The Hong Kong Monetary Authority will approve only a few licenses, requiring strong reserves and anti-money laundering safeguards. Analysts say mainland authorities remain wary of capital flight and loss of control over monetary policy.

State-owned banks are expected to participate in early pilot programs focused on business-to-business payments. China has long pushed for renminbi-dominated settlement options to reduce reliance on the SWIFT system, especially during geopolitical tensions. Officials emphasized that any stablecoin activity must align with national conditions and avoid creating channels for unauthorized capital movement.

Paxos Settles with NY Regulator for $48.5 Million

Paxos Trust has agreed to pay $26.5 million in fines and invest another $22 million into its compliance program after a settlement with New York regulators. The NYDFS cited failures in due diligence and AML controls tied to the firm’s partnership with Binance on the now-discontinued BUSD stablecoin. Paxos accepted the findings but said the issues were resolved over two years ago.

The regulator said Paxos failed to independently verify Binance’s claims about U.S. customer restrictions before launching the token. Paxos ended the relationship in 2023 after NYDFS ordered it to halt BUSD minting. The SEC had also investigated the company for securities violations, but later dropped the case without filing charges.

Data of the Day

Ethereum reached a record high of 1.74 million daily transactions, linked to rising stablecoin usage and corporate treasury strategies. The network also saw a jump in active addresses, boosted by DeFi activity and the recent gas limit increase to 45 million. Analysts credit both institutional interest and the broader search for yield amid expected interest rate cuts.

Presto Research and Kronos Research said firms are increasingly holding ETH on balance sheets to diversify exposure and earn staking rewards. ETH treasuries now exceed $7.5 billion, while price growth has lagged onchain activity. Analysts expect ETH to gain momentum if Ethereum staking ETFs receive regulatory approval in the coming months.

More Breaking News

• Ripple will acquire stablecoin payments firm Rail for $200 million, adding 10 percent of global stablecoin transaction volume to its growing network.
• The European Banking Authority finalised draft rules requiring banks to hold 1,250 percent capital against Bitcoin and Ether under strict new crypto guidelines.
• The Winklevoss twins invested bitcoin in Trump-linked miner American Bitcoin, which plans a Nasdaq listing pending merger approval with Gryphon Digital Mining.
• Chainlink launched the LINK Reserve to accumulate converted enterprise and onchain fees using Payment Abstraction, strengthening the network’s long-term growth and sustainability.
• Ethereum treasury firm SharpLink raised $200 million to buy more ETH, expanding its position as one of the largest publicly listed ether holders.
• ProShares launched the Ultra CRCL ETF, offering leveraged exposure to Circle stock as USDC adoption grows under the new US stablecoin legal framework.
• Aave was hit by a phishing attack targeting users via fake investment sites on Google Ads, just days after surpassing $60 billion in deposits.
• Tether led a €30 million investment in Bit2Me after it secured MiCA approval, boosting regulated crypto exchange access across Europe and Latin America.
• Crypto salaries tripled in 2024, with Circle’s USDC dominating payroll preferences as firms adopt blockchain-native compensation structures with long-term vesting incentives.

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