Trump Supercharges Investment Landscape With Bold Executive Order – Here’s What Changes
Wall Street braces for impact as Trump administration drops regulatory bombshell
The White House just rewrote the rules—again. President Trump's latest executive order tears down barriers for investors, promising to 'unleash American capital like never before.' Critics call it a gift to hedge funds; proponents claim it's Main Street's ticket to the big leagues.
Key changes hitting the market:
- Streamlined approval for alternative assets
- Reduced reporting burdens for small investors
- New fast-track options for infrastructure projects
Goldman Sachs analysts predict a $2T liquidity surge—though cynics note the same firm stands to collect 40% in fees. The order takes effect immediately, bypassing Congressional gridlock with classic Trump-era efficiency.
One thing's certain: the wealth management industry just got its Christmas bonus in August.
The Executive Order and Crypto Assets
The order highlights the benefits of investing in alternative assets, real estate, and cryptocurrencies in terms of competitive returns and risk distribution. Previously, the U.S. Department of Labor had advised caution against using cryptocurrencies in retirement plans, but this warning was completely lifted in May. The Department of Labor is expected to release new guidelines that treat cryptocurrencies like other assets following the latest executive order.
These regulatory changes might prompt asset managers, previously distant from crypto markets, to review their positions. Consequently, substantial funds might FLOW into mutual funds that include Bitcoin
$117,530 and similar assets, or directly into these assets.
Matt Hougan, Chief Investment Officer at Bitwise: “This decision is not about the government saying ‘crypto should be in retirement plans.’ It’s about empowering people to make their own choices.”
The second quarter of this year saw significant growth in crypto markets. Many cryptocurrencies hit new records in July, as the U.S. took steps toward clearer regulations.
Experts believe cryptocurrencies might be included in retirement plans both directly and through mutual funds. However, given a risk-averse approach in retirement investments, managers might prefer mutual funds over direct crypto investments.
Jeffrey Hirsch, CEO of Hirsch Holdings and chief editor of the Stock Trader’s Almanac: “I’m already using Bitcoin ETFs in my IRA. ETFs are suitable for retirement accounts, but direct coin investment seems too risky outside of retirement.”
The Future of Cryptocurrencies
Another executive order signed by TRUMP aims to prevent financial institutions from limiting or denying services based on political or religious views or lawful business activities. According to a White House release, this move guarantees fair access to banking services for all Americans.
The newly signed orders are significant for both crypto’s entry into retirement funds and preventing crypto companies’ exclusion from the banking system. A competition in crypto-based retirement funds within the 401(k) sphere will likely emerge, boosting mutual fund entries. Including crypto in retirement plans will bring 5-10 year hold periods, fueling supply shortages—a major development.
Regulations instruct federal banking regulators, the Small Business Administration, and the Treasury Secretary to eliminate politically motivated and unlawful practices, such as the concept of “reputational risk,” within six months. The order does not mention crypto directly, but a memo notes that the crypto sector occasionally faces unjust practices.
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