President Trump recently signed an executive order directing the Labor Department to reassess its guidance on fiduciary responsibilities related to alternative assets, including cryptocurrencies. This order aims to allow alternative investments, such as real estate and private equity, to be included in 401(k)s and other retirement plans. The initiative also hopes to address burdensome lawsuits that limit fiduciary discretion. Following the announcement, cryptocurrencies like Bitcoin and Ethereum saw notable price increases, reflecting investor optimism. Hedge funds and private equity firms are eager for regulatory changes that could facilitate broader access to these assets. However, the process of implementing new regulations will take time, as federal agencies have 180 days for review before any proposals are made. Additionally, even if regulations permit alternative assets, brokerage firms still must choose to offer them, which could involve significant infrastructure and compliance costs. Trump's order also addresses the issue of 'debanking,' directing a strategy to combat discrimination by banks based on clients' political beliefs, a practice that has notably impacted the crypto sector.

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