PolitiFi Tokens Surge 20% as Trump to Allow Crypto in 401(k)s

Cryptocurrencies saw a notable rally on Thursday as news broke that former U.S. President Donald Trump is set to sign an executive order allowing 401(k) retirement accounts to include alternative investments such as cryptocurrencies, private equity, and real estate. The development has sent waves of optimism through the market, particularly among politically themed tokens, which have seen significant gains in the past 24 hours [1].

Digital assets associated with the PolitiFi segment, including tokens like TRUMP, PEOPLE, BODEN, and SBR, have surged as much as 20%, collectively adding over $86 million in value within a single day. According to Coingecko, the market capitalization of PolitiFi tokens increased by 4.1% in the past 24 hours, rising from $2.02 billion to $2.11 billion. The segment also recorded a daily trading volume of $261.26 million, reflecting strong investor interest and activity [1].

Ethereum maintained a position above $3,800, while XRP rebounded to surpass the $3 level following a 5% increase. The broader cryptocurrency market has responded positively to the news, with altcoins showing substantial gains. The rise in demand has been fueled by growing expectations around the potential inclusion of digital assets in mainstream financial products, particularly 401(k) plans [1].

The executive order, if enacted, would require the Department of Labor to reassess existing models that restrict how 401(k) fund managers approach alternative investments. Currently, the guidelines emphasize a balance between “reasonable risk and reasonable price,” but these standards have not kept pace with the rapid evolution of asset classes like cryptocurrency. The new directive aims to develop comprehensive standards in collaboration with the SEC and Treasury, addressing key questions around risk measurement, portfolio allocation, and suitability benchmarks [1].

The implications for the crypto industry are potentially transformative. The U.S. 401(k) market, valued at over $12.5 trillion, could become a new source of long-term capital for digital assets. This shift may bring increased liquidity and price stability, particularly as institutional adoption continues to rise through products like ETFs and treasury holdings. The timing of the policy change aligns with growing confidence in the sector, with firms increasingly committing to crypto purchases [1].

The inclusion of cryptocurrencies in retirement plans may also help attract traditional investors who remain hesitant due to the asset class’s volatility. By positioning digital assets within regulated, diversified portfolios, the industry could see a broader acceptance that accelerates mainstream adoption [1].

Source: [1] PolitiFi tokens add $86M as Trump opens 401(k)s to crypto and real estate (https://invezz.com/news/2025/08/07/politifi-tokens-add-86m-as-trump-opens-401ks-to-crypto-and-real-estate/)