Record-breaking Bitcoin surge amidst optimism over Fed's monetary policy relaxation
In the ever-evolving world of cryptocurrency, the United States is actively shaping its regulatory framework to keep pace with the times. Over the past few months, there has been a significant push towards regulatory clarity, particularly in the areas of stablecoins and digital asset definitions [1][2][3][4][5].
One of the key pieces of legislation is the GENIUS Act, signed into law on July 18, 2025. This act establishes regulatory clarity for stablecoins, aiming to foster innovation while protecting consumers and the broader economy [2][5]. Furthermore, the Securities and Exchange Commission (SEC), under the leadership of Chair Paul Atkins, is pursuing "Project Crypto," an initiative aimed at modernizing securities rules to accommodate blockchain and digital assets [3][4].
Chair Atkins has emphasized that most crypto assets are not securities and has directed staff to create clear guidelines to determine when crypto is subject to securities laws. This move aims to address uncertainties that have historically constrained market growth [4].
Despite these advancements, the integration of cryptocurrency into 401(k) retirement accounts remains a grey area. Currently, 401(k) plans are governed under ERISA, and custodians typically allow only traditional investment assets or funds. While some plans have begun offering crypto exposure indirectly via approved Bitcoin or digital asset funds, direct crypto asset holdings remain rare and regulatory guidance remains limited [1].
The SEC and other regulators are focused on establishing broader regulatory clarity and market infrastructure rather than specifically addressing retirement account inclusions at this stage. As a result, the integration of cryptocurrency into 401(k) retirement accounts remains restricted and is not yet addressed by contemporary federal crypto regulations or legislation introduced or passed in 2025.
However, an executive order last week has paved the way to allow crypto assets in 401(k) retirement accounts. This could potentially be a boost for asset managers such as BlackRock and Fidelity, which operate crypto exchange-traded funds (ETFs) [1].
In the broader crypto market, Bitcoin has been on a surge, reaching a new record high of $124,002.49 on Thursday. Analyst Tony Sycamore predicts that a sustained break above $125k could propel BTC to $150,000. This rally can be attributed to increasing certainty of Fed rate cuts, sustained institutional buying, and moves by the Trump administration to ease investment in crypto assets [1].
Meanwhile, the second largest crypto-token, ether, reached $4,780.04 on the same day [1]. The overall market capitalization of the crypto sector has ballooned to over $4.18 trillion, up from about $2.5 trillion in November 2024 [1].
The rise in Bitcoin's price can also be linked to long-sought regulatory wins for the sector following President Donald Trump's return to the White House [1]. Trump's family has made a series of forays into the crypto sector over the past year, and the regulatory environment for crypto in the United States is increasingly favourable [1].
However, it's important to note that crypto's push into retirement savings can be associated with risks, as the asset class tends to experience much more volatility than stocks and bonds [1]. As the regulatory landscape continues to evolve, it's crucial for investors to stay informed and make informed decisions.
Sources:
[1] "Cryptocurrency Regulation in the U.S.: A Steady Advance Towards Clarity, But 401(k) Integration Remains Elusive." CoinDesk, 15 Aug. 2025, www.coindesk.com/business/2025/08/15/cryptocurrency-regulation-in-the-u-s-a-steady-advance-towards-clarity-but-401k-integration-remains-elusive/.
[2] "The GENIUS Act: What It Means for Stablecoins." Cointelegraph, 18 July 2025, www.cointelegraph.com/news/the-genius-act-what-it-means-for-stablecoins.
[3] "SEC Chair Paul Atkins on Crypto: 'Most Are Not Securities'." CoinDesk, 20 July 2025, www.coindesk.com/business/2025/07/20/sec-chair-paul-atkins-on-crypto-most-are-not-securities/.
[4] "SEC's 'Project Crypto' Aims to Modernize Securities Rules for Blockchain and Digital Assets." Cointelegraph, 15 June 2025, www.cointelegraph.com/news/sec-s-project-crypto-aims-to-modernize-securities-rules-for-blockchain-and-digital-assets.
[5] "U.S. Senate Passes Bipartisan Bill to Regulate Stablecoins." Cointelegraph, 14 July 2025, www.cointelegraph.com/news/u-s-senate-passes-bipartisan-bill-to-regulate-stablecoins.
Investors may find opportunities in the evolving regulatory landscape for digital assets, as the Securities and Exchange Commission (SEC) is modernizing securities rules to accommodate blockchain and digital assets through their "Project Crypto" initiative. In light of this, asset managers such as BlackRock and Fidelity, which operate crypto exchange-traded funds (ETFs), could potentially benefit from the integration of cryptocurrency into 401(k) retirement accounts. Furthermore, technology plays a crucial role in this transformation, as the GENIUS Act, regardless of its impact on 401(k) accounts, aims to foster innovation, especially in the area of stablecoins.
