SEC clarifies liquid staking tokens aren't securities in win for DeFi: CNBC Crypto World
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hill
7 minutes ago
- The Hill
Trump to sign executive order allowing cryptocurrencies, private equity in 401(k)s
President Trump is set to sign an executive order on Thursday to allow 401(k) investors to access cryptocurrencies, private equity, real estate and other digital and alternative assets. The order directs the Securities and Exchange Commission (SEC) to revise regulations in order to facilitate access to alternative assets for participant-directed defined-contribution retirement savings plans, including 401(k)s. Trump, through the order, would direct Labor Secretary Lori Chavez-DeRemer to reexamine the guidance on fiduciary's duties regarding alternative asset investments and direct her to consult with Treasury Secretary Scott Bessent and the SEC to determine what regulatory changes can be made. Trump is signing the order to give American workers more investment options, a White House official said, arguing that alternative assets like private equity, real estate, and digital assets offer competitive returns and diversification benefits. An order that would encourage retirement funds to invest in private equity comes as that sector is hungry for capital after shrinking last year for the first time in decades. Through the order, Trump would be opening up retirement plans to riskier investments while giving private equity a much-needed capital infusion. The customers of private equity firms are usually big institutional investors like defined-benefit pension plans, along with super wealthy people, while defined-contribution retirement plans usually invest in typically safer publicly traded stocks and bonds. The president has taken other steps to diversify financial options for Americans, including rolling back Biden-era rules on digital assets and dismissing cases and investigation against numerous crypto cases. Trump promised on the campaign trail to make the U.S. the 'crypto capital of the planet.' The White House last month laid out in a 166-page report with recommendations for lawmakers and regulators on everything from crypto oversight to taxation to banking rules.
Axios
7 minutes ago
- Axios
Trump to supercharge private equity with 401(k) order
President Trump on Thursday is expected to sign an executive order to allow private equity and other alternative assets into 401(k) retirement accounts. Why it matters: This is a major realignment of the capital markets, and could result in private equity becoming even more ubiquitous. Catch up quick: Federal rules currently prevent most defined-contribution plans from investing in alt assets like private equity, private credit, and cryptocurrencies. In short, it's considered a breach of fiduciary duty. As such, they mostly invest in stocks and bonds. Trump issued guidance in his first term to relax these restrictions, but the language was later rescinded by former president Biden. Driving the news: Trump's new executive order goes further, with a White House official saying it will direct the Department of Labor to reevaluate existing rule interpretations and, if necessary, propose regulatory changes. It also will ask the SEC to revise applicable rules and guidance to better facilitate retirement fund investments into alt assets. The big picture: This is the holy grail for private equity, both in the U.S. and globally, opening up trillions of dollars in new investment. And it couldn't come at a better time for the industry, which traditionally has been funded by public and corporate pensions, family offices, private foundations, university endowments, and sovereign wealth funds. Many of those longtime limited partners have begun to question their commitments, and even lower allocations, due to a multi-year dearth of distributions. Adding 401(k)s could refill the pot, after several years of fundraising declines. Zoom out: It also could be a giant boon for cryptocurrency markets, with Bitcoin prices rising ahead of the EO signing. Yes, but: It's no sure bet that retirement plan administrators will rush into alt assets. Some may be turned off by the high fees, long-dated investment horizons, redemption restrictions, and lack of transparency. Others may worry that both the crypto and private credit markets aren't yet mature enough.
Washington Post
8 minutes ago
- Washington Post
Trump to sign order to open alternative assets to retirement savers
President Donald Trump is expected to sign an executive order making it easier for everyday savers to invest their retirement funds in alternative assets, including private-market assets like private equity and real estate as well as crypto currencies, two White House officials confirmed Thursday. The order is expected to direct the Labor Department to work with the Treasury Department and the Securities and Exchange Commission to see which regulations need to be changed so that alternative-asset managers can tap into employer-sponsored retirement plans, according to a White House document obtained by The Washington Post. Americans have more than $12 trillion in these plans, including $9 trillion in 401(k)s, which these managers see as untapped capital.
