Trump Order Boosts Crypto, SEC Drops Ripple Case

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Bitcoin and other cryptocurrencies saw a boost Friday after two major developments involving the Trump administration and the U.S. Securities and Exchange Commission (SEC) signaled a friendlier climate for digital assets.

The biggest headline came from President Donald Trump, who signed an executive order opening Americans’ retirement accounts, specifically 401(k) plans, to alternative investments, including cryptocurrencies and private equity. The move is being welcomed by financial and crypto industry leaders as a significant shift toward deregulation and broader access to emerging markets.

According to the Investment Company Institute, U.S. 401(k) accounts held $8.9 trillion in assets as of September last year. Trump’s order could allow these massive sums to flow into digital currencies and blockchain-related products, which until now have been largely restricted from retirement portfolios due to regulatory concerns and risk classifications.

Bitcoin rose 1.4% over the past 24 hours following the announcement, trading at $116,605 as of Friday afternoon, according to CoinDesk. While still about 5% below its record high from mid-July, the rebound reflects increased optimism in the market.

In a separate but equally impactful development, the SEC on Thursday officially dropped its years-long legal case against Ripple Labs, the blockchain company behind the XRP cryptocurrency. The agency’s decision ends a high-profile legal battle that began in 2020 when the SEC accused Ripple of conducting an unregistered securities offering.

Ripple maintained throughout the proceedings that XRP should be classified as a digital currency, not a security. With the SEC now backing away from the case, XRP investors responded with enthusiasm. The token surged 11% over the past 24 hours, according to data from crypto exchange Kraken.

The SEC’s retreat may set a precedent for how other digital assets are regulated in the U.S., easing uncertainty for crypto developers, exchanges, and investors. Market analysts say the development could limit the SEC’s authority in classifying tokens as securities without clearer legislative guidance from Congress.

Bitcoin and XRP weren’t the only tokens to benefit from this week’s events. Ethereum, the second-largest cryptocurrency by market capitalization, rose 4.8% in 24 hours. Solana climbed 3.4% over the same period.

Crypto analysts believe the policy signals from Washington could create sustained momentum for digital assets through the rest of the year. Some industry leaders point to the combination of Trump’s executive order and the SEC’s de-escalation as a potential turning point in crypto regulation.

“The market has been waiting for signs that U.S. regulators would take a more balanced approach,” said Thomas Galvin, a New York-based digital asset strategist. “This week brought exactly that, and investors are responding.”

Trump’s order allows fiduciaries managing retirement accounts to offer more flexibility when constructing investment portfolios. This could include exposure to cryptocurrencies, private equity funds, hedge funds, and other alternatives, provided they meet certain risk and transparency standards.

Financial firms have been pushing for such reforms, arguing that modern portfolios should reflect more diverse investment options. While critics of crypto remain concerned about volatility, advocates say access to digital assets within tax-advantaged accounts like 401(k)s could democratize crypto investing.

It remains to be seen how quickly major plan administrators like Vanguard or Fidelity will adopt the changes, but experts believe the door is now open.

The developments also underscore how cryptocurrency is becoming a larger issue in American politics, particularly among Republican lawmakers. Trump has previously expressed skepticism about digital assets, but the recent executive order suggests a more pragmatic stance as he seeks to energize financial and tech-oriented voter blocs ahead of 2026.

Meanwhile, the SEC, under its current leadership, has faced criticism for its aggressive posture toward the crypto industry. The agency’s decision to abandon the Ripple lawsuit may reflect internal recalibration in response to legal setbacks and public pressure.

While crypto markets remain sensitive to broader economic signals such as interest rates, inflation data, and global instability, the actions taken this week may indicate a shift in how U.S. institutions interact with digital currencies.

For investors, the message is clear: regulation is evolving, and digital assets are steadily moving closer to mainstream acceptance.