From August 4 to 8, the virtual asset market showed a slight increase, bolstered by policy benefits and the expanded expectations for interest rate cuts. Bitcoin's price recorded $117,396, up 2% from the previous week, while Ethereum rose 6.5% to $3,902. In the altcoin market, Mantle (MNT, +46.58%), PumpDotFun (PUMP, +30.60%), and Pendle (PENDLE, +28.92%) showed strong performance.
The biggest benefit for the market this week was President Donald Trump's signing of an executive order allowing investments in virtual assets, private equity funds, and real estate through retirement accounts. This opened a pathway for institutional virtual asset investments in the 401(k) accounts, which account for about $9 trillion of the $43 trillion U.S. retirement fund market, increasing expectations for the inflow of long-term institutional funds.
In the macroeconomic environment, the increase in U.S. nonfarm employment in July was significantly lower than expected, at 73,000 (compared to the forecast of 104,000), and both the ISM manufacturing and services indexes fell short of market projections, heightening concerns about economic slowdown. As a result, expectations for a rate cut in September resurfaced, which stimulated the buying sentiment for risk assets. The news of the early resignation of hawkish Federal Reserve Board member Christopher Waller, expected to be replaced by a Trump-friendly appointee, also added to the expectations for an interest rate cut.
Hwang Hyo-jun, a researcher at the cryptocurrency research firm, noted, "Allowing retirement fund investments is a regulatory change that can broaden the pathways for inflows of long-term capital, and in the short term, the combination of expectations for rate cuts and policy momentum is likely to strengthen the preference for risk assets."
◇ President Trump signs executive order allowing inclusion of digital assets in 401(k) retirement accounts
On August 8, President Trump signed an executive order allowing digital assets such as Bitcoin and alternative investment assets like private equity funds to be included in 401(k) retirement accounts. This measure heralds significant changes in the structure of U.S. retirement fund management and is expected to accelerate the integration of digital assets into the regulatory framework.
Through the executive order, President Trump directed the Department of Labor (DOL) to establish specific policies and instructed relevant organizations such as the Securities and Exchange Commission (SEC) and the Department of the Treasury to revise related regulations. The executive order included a provision for the SEC to review amendments to the criteria for 'accredited investors' and 'qualified purchasers' to allow 401(k) participants access to alternative assets. Previously, President Trump had issued several pro-virtual asset executive orders, including the establishment of a national Bitcoin reserve and the stockpiling of digital asset strategies.
◇ SEC-Ripple lawsuit concludes, confirming XRP's secondary transaction as 'non-security'... Price surges 11%
The U.S. Securities and Exchange Commission (SEC) and Ripple submitted a joint motion to the Second Circuit Court of Appeals on August 8 (local time) to dismiss the appeal, officially ending years of legal disputes between the two parties. This decision finalized the ruling made by Judge Analisa Torres in July 2023. That ruling determined that sales of XRP to institutional investors constituted unregistered securities, but that secondary market transactions through exchanges were deemed non-securities. This is one of the first cases in U.S. federal courts to officially recognize specific cryptocurrency secondary transactions as 'non-securities,' resolving long-standing uncertainties regarding XRP's legal status.
Immediately following this news, XRP surged over 11%. The market views this ruling as a catalyst that will accelerate Ripple and XRP's adoption into the regulatory framework. Particularly, with regulatory risks significantly eased in business developments such as global payment network expansion, resumption of institutional partnerships, and launching new services, it is assessed that Ripple is well-positioned to pursue a more aggressive growth strategy in both the U.S. and overseas markets.
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