U.S. President Donald Trump has signed an executive order to allow crypto investments in 401(k) retirement plans, opening the gates for millions of dollars to flow into the asset class. The order, which also allows for private equity investments, is poised to dramatically widen the scope of what retirement plan providers can direct funds to. This in turn could help crypto prices while further integrating digital assets with the broader financial system. “Alternative assets, such as private equity, real estate, and digital assets, offer competitive returns and diversification benefits,” a fact sheet published Thursday said. While it was never technically prohibited to add crypto to a retirement plan, the Department of Labor previously put out guidance for fiduciaries to “exercise extreme care before they consider adding a cryptocurrency option to a 401(k) plan’s investment menu for plan participants.” In May, that guidance was fully rescinded. Trump’s order would now direct the DOL to publish new guidance which would put cryptocurrencies in the same bucket as other assets. This could encourage wealth managers, who previously stayed away from the risky asset class, to reconsider their positions, possibly bringing millions of dollars into exchange-traded funds (ETFs) holding bitcoin (BTC) and other assets, or the cryptos directly. “This order isn’t about the government saying ‘crypto belongs in 401(k)s.’ It’s about the government getting out of the way and letting people make their own decisions,” said Matt Hougan, chief investment officer at Bitwise. The order comes as crypto assets have finished one of its best quarters to date, with many of them reaching new all-time highs in June amid several promising steps towards clearer regulation in the U.S. Bitcoin, which is currently trading at $117,351 and is up 26% year-to-date, has also been seeing its volatility shrink to levels not seen since 2023, signaling a maturing market and investor confidence. While both spot crypto as well as other financial vehicles holding the assets will be ok to add to retirement plans, given the risk-averse nature of such investments, many managers could reach for the ETFs rather than direct exposure. “I already trade the BTC ETFs in my IRA. I think the BTC ETFs are fine for retirement accounts. But straight coin seems too risky and would be better suited to non retirement accounts,” said Jeffrey Hirsch, CEO of Hirsch Holdings and editor-in-chief of Stock Trader’s Almanac. The spot bitcoin ETFs have seen unprecedented success since their launch in January 2024. BlackRock’s iShares Bitcoin Trust (IBIT) alone is now handling over $85 billion worth of bitcoin. Debanking order Trump signed several executive orders on Thursday, including another one addressing debanking. A fact sheet published by the White House said the order would “ensure that Federal regulators do not promote policies and practices that allow financial institutions to deny or restrict services based on political beliefs, religious beliefs or lawful business activities, ensuring fair access to banking for all Americans.” The order itself directs federal banking regulators, the Small Business Administration and the Treasury Secretary, alongside other officials, to “remove the use of reputation risk or equivalent concepts that could result in politicized or unlawful debanking” within the next six months. The order itself did not mention crypto, though the fact sheet said the “digital assets industry has also been the target of unfair debanking initiatives.” Powered by WPeMatico

Having tumbled to below $112,000 at one point a few days ago, bitcoin (BTC) has returned above $117,000 in late after U.S. trading Thursday, for now retaking the range it had been in for most of July. First giving a boost the crypto market overnight was news about President Trump’s intention to sign an executive order allowing crypto (among other assets) in 401(k) retirement plans (that order has now been signed). The push above $117,000 occurred late in the U.S. trading session Thursday on news of the nomination of Stephen Miran to replace the departing Andrea Kluger on the Federal Reserve’s Board of Governors. Currently the chairman of the White House Council of Economic Advisers, Miran is presumably an ally of the president and for now probably likely to at least partially share his dovish views on the current level of interest rates. Even prior to the Miran selection, a series of Fed speakers over past days — reacting to Friday’s weak jobs numbers and Monday’s soft ISM Services print — made clear their expectation that a rate cut is likely coming at the central bank’s next meeting in September. According to CME FedWatch the chance of September cut had risen to 95% from just 38% one week ago. The Fed’s Jackson Hole Economic Symposium is taking place in two weeks. The confab has in recent years served as a spot for Fed chairs to signal important policy actions, so all eyes and ears are likely to be focused on Jerome Powell’s keynote speech there. Alongside the move higher in bitcoin to $117,500 — up 2% the past 24 hours — ether (ETH) is ahead 5% to $3,867 XRP (XRP) 3.4% to $3.10. Checking traditional markets find gold up 1% to $3,468 per ounce, the dollar modestly lower across the board and major stock market indices mixed. Powered by WPeMatico

Two Seas Capital, the third largest shareholder in Core Scientific (CORZ) with a 6.3% stake, has come out against the bitcoin miner’s proposed all-stock acquisition by AI cloud provider CoreWeave (CRWV). In a letter published Thursday, Two Seas said it intends to vote against the deal, which was announced July 7, and plans to rally other shareholders to do the same unless significant changes are made. The opposition centers on the all-stock, uncollared nature of the transaction, which Two Seas argues unfairly favors CoreWeave and fails to reflect Core Scientific’s strategic position in high-performance computing (HPC) infrastructure. “The proposed sale materially undervalues the company and unnecessarily exposes its shareholders to substantial economic risk,” said Sina Toussi, founder of Two Seas. CORZ is up modestly in Thursday trading at $14.24, substantially below what the roughly $20 the shares would have been worth at the time of the proposed acquisition four weeks ago. Two Seas has backed CORZ since 2022, participating in its post-bankruptcy restructuring and financing rounds. The firm says it still believes in Core Scientific’s long-term value and prefers it remain independent if a better offer doesn’t emerge. Despite also holding a stake in CoreWeave and supporting the idea of a combination, Two Seas called the current deal underwhelming and pointed to Core Scientific’s 30% stock drop after the deal announcement as evidence of investor concern. Two Seas urged the board to pursue alternative bids, including from CoreWeave, but only at terms that reflect the full strategic value of Core Scientific’s assets and growth prospects. The firm plans to release further analysis and engage with shareholders in the coming weeks. Analysts at investment bank KBW predicted that Core Scientific shareholders may push back on the terms of the deal, given the unchanged asset base since CoreWeave’s first failed bid and the lack of a cash component, in a report published last month. Read more: CoreWeave’s All-Stock Bid for Core Scientific Likely to Draw Shareholder Scrutiny: KBW Powered by WPeMatico

Technical Analysis Shows Strong Bullish Momentum ATOM posts volatile trading in the final hour from 13:06 to 14:05 on August 7. Price climbs from $4.41 to $4.43 peak at 13:40 before sliding back to $4.41. Net decline hits 0.02%. Volume spikes to 37,187 units at 13:39, pushing price above $4.42 resistance. New resistance forms at $4.43. Selling pressure emerges as volume fades toward session close. Price consolidates around $4.41 support. Key Market Movements and Economic Factors ATOM jumps 3.40% in 23-hour window from August 6 15:00 to August 7 14:00. Breaks key resistance on heavy volume. Coinbase lists COSMOSDYDX token on roadmap. Exchange announces direct dYdX support on native Cosmos network. Cronos (CRO) rockets 76% over 30 days. Protocol upgrades and ETF speculation with Crypto.com drive gains. Cosmos Ecosystem Gains Momentum Amid Market Shifts Cosmos ecosystem accelerates as ATOM climbs from $4.26 to $4.41. Trading volume surges. Coinbase embraces Cosmos projects including dYdX native integration. Rally coincides with broader market rotation. Investors pivot to decentralized alternatives amid trade tensions. Monetary policy uncertainty weighs on traditional markets. Technical Indicators Signal Continued Upside ATOM delivers strong bullish momentum over 23 hours from August 6 15:00 to August 7 14:00. Price surges from $4.26 to $4.41, posting 3.40% gain with $0.18 range. Token establishes critical support at $4.29. High-volume confirmation during multiple retests. Resistance emerges at $4.34 before decisive break at 10:00 session. Volume hits exceptional 1,695,921 units. Breakout above $4.34 resistance backed by volume exceeding 24-hour average of 674,298 units. Technical structure stays constructive. Higher lows pattern intact. Momentum indicators support further upside. Breakout targets $4.43 Fibonacci extension level. Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy. Powered by WPeMatico

SharpLink Gaming (SBET), a Nasdaq-listed ether treasury firm, said it has raised $200 million to buy more ether (ETH) in expectation of boosting its holdings to more than $2 billion worth of the second-largest cryptocurrency. The Minneapolis-based company entered into a securities purchase agreement with four institutional investors to raise the capital through a direct offering at a price of $19.50 per share, it said in a statement. The firm’s ether holdings sit at 521,939 ETH as of its latest purchases, worth just under $2 billion based on ether’s price of $3,830.65 at the time of writing. SharpLink shares rose around 3.3% at $22.97 in the late U.S. morning on Thursday, following ETH’s 4.5% rally over 24 hours to reclaim the $3,800 level. The company is one of a growing number to adopt an ether treasury strategy, raising funds to accumulate ETH and staking the tokens in exchange for rewards. Powered by WPeMatico

NEAR Protocol climbed 5% from $2.47 to $2.60 in the 24-hour period ending 7 August at 14:00 UTC, exhibiting strong resilience amid broader market turbulence. Institutional accumulation helped fuel a recovery rally after early-session lows, with price action coalescing between $2.48 and $2.52 before a sharp upside break around 10:00 UTC, supported by 3.36 million in trading volume. The asset’s advance, partially influenced by global risk-off sentiment, reflected investors’ pivot to alternative assets during heightened geopolitical and macroeconomic uncertainty. Late-Session Sell-Off Caps Bullish Momentum Despite its earlier strength, NEAR’s final hour of trading—from 13:06 to 14:05 UTC—witnessed a surge in volatility that erased most intraday gains. After briefly testing resistance at $2.61, a spike in volume between 13:39 and 13:42 coincided with profit-taking behavior. Selling pressure shaped a descending channel, with price retreating to close at $2.60, slightly above fresh support near $2.598. The move signals possible short-term exhaustion, as institutional distribution may be limiting further upside despite earlier accumulation. Macro Conditions Continue to Shape Market Dynamics The backdrop of NEAR’s performance remains heavily influenced by shifting macroeconomic forces. As major economies recalibrate monetary policy in response to inflationary effects from ongoing trade disputes, institutional flows into digital assets like NEAR have intensified. The cryptocurrency’s intraday pullback mirrors broader market hesitation, as participants digest global policy shifts and their implications for crypto-market structure and risk appetite. Technical Indicators Analysis NEAR Protocol demonstrated considerable resilience during the preceding 24-hour period from 6 August 15:00 to 7 August 14:00, recovering from early session nadirs of $2.47 to close at $2.60, representing a compelling 5% gain. The cryptocurrency exhibited a classic accumulation pattern throughout the initial 18 hours, consolidating between $2.47-$2.52 before surging dramatically at 10:00 on 7 August with exceptional volume of 3.36 million units—approaching threefold the 24-hour average of 1.20 million. This breakout established robust support at $2.51 and resistance proximate to $2.61, with the pronounced price expansion suggesting institutional accumulation followed by momentum-driven purchasing that could extend towards $2.65-$2.70 based upon measured move projections. Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy. Powered by WPeMatico

Popular memecoin PEPE has risen more than 5% over the last 24 hours, powered by a high-volume breakout that helped the token’s price surge above a recent resistance level. The upward trend formed on a series of higher lows, a sign of sustained buying interest, according to CoinDesk Research’s technical analysis data model.. Volume spikes accompanied each move higher, suggesting that larger investors may be accumulating. While the rally has technical strength, the broader context is more complicated. Trading volume across PEPE derivatives contracts has dropped 73% since mid-July according to CoinGlass data. That drop in activity comes amid a rise in the PEPE token holdings of the 100 largest addresses on the Ethereum network. Over the past 30 days, these addresses added 2.36% to their holdings, while exchange reserves dropped by 2.4%, per Nansen. The rise of PEPE’s price is likely tied to an ongoing rally in risk assets, driven by growing expectations that the Federal Reserve will cut interest rates by 25 bps in September. The CME’s FedWatch tool is currently weighing a 93% chance of that happening, while Polymarket traders place chances at 79%. Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy. Powered by WPeMatico

Polkadot’s DOT rose as much as 4% in the last 24 hours, climbing from $3.65 to $3.80 on institutional buying, according to CoinDesk Research’s technical analysis model. The model showed that the breakout accelerated between 10:00-11:00 GMT as price rose from $3.68 to $3.79. Volume spiked to 5.29 million units, nearly 3x the daily average of 1.83 million, confirming strong accumulation at $3.68 support, according to the model. Resistance caps gains at $3.80 as profit-taking emerges on elevated volume. The staking rate on Polkadot has slipped to 49.17% over the last week. The rally in Polkadot came as the wider crypto market also rose, with the broader market gauge, the Coindesk 20, recently up 3.7%. In recent trading, DOT was 3% higher over 24 hours, trading around $3.76. Technical Indicators Analysis Institutional distribution at higher levels confirms breakdown of previous bullish structure from 24-hour surge. Strong high-volume support established at $3.68 level with exceptional volume confirmation. Key resistance emerges at $3.80 where price reverses on elevated volume. Sustained upward momentum with consistently higher lows signals continued bullish sentiment. Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy. Powered by WPeMatico

In today’s Crypto for Advisors newsletter, Alex Tapscott, explains the flywheel effect, and it’s impact on the crypto markets. Then, Natalie Hirsch from Polymath answers questions about questions about investing in public crypto companies in Ask an Expert. Thank you to our sponsor of this week’s newsletter, Grayscale. For financial advisors: register for the upcoming Minneapolis event on September 18th. Unknown block type “divider”, specify a component for it in the `components.types` option The Crypto Flywheel Keeps Spinning! These days it’s become fashionable to describe how crypto is driving a “flywheel effect” in the market, and that is a reason to be bullish. But what is the flywheel effect, exactly? The term was popularized by Jim Collins in his 2001 book “From Good to Great.” Collins asked us to imagine someone pushing a giant wheel. With the first push, the wheel budges only slightly, but after hundreds of pushes, it begins to gain momentum — every new push becomes easier and accelerates the wheel further. Nobody can say for sure which push helped it to achieve that momentum, because it is the product of all the small pushes together. The lesson for business leaders is this: Do the small stuff right consistently and you’ll be rewarded in the long run. Today, the term has evolved into something else. Rather than describing only the impact of sound operational decision-making, flywheel effects now describe how positive feedback loops impact systems, like marketplaces and whole industries. Here are some of the ways that dynamic is at play in crypto and public markets: Because of the demand from investors for access to crypto assets, digital asset treasury companies (aka DATs) like MicroStrategy can issue shares at a premium to their underlying net asset value, buy bitcoin and other assets, and grow NAV per share. This can drive the underlying asset higher and induce more people to buy shares of their company. Flywheel effects are also seen in ETF markets. The launch of ether-focused digital asset treasury companies helped accelerate flows into ETFs too. Ether ETFs have seen inflows of more than $6 billion since launching. ETH gained as much as 50 percent in July and closed the month at around $3,800, and the Ether-to-bitcoin price ratio broke above its 200-day moving average. Stablecoin issuers produce flywheel effects too. For example, Tether, issuer of the USDT coin, reinvests its enormous profits ($4.9 billion last quarter) in bitcoin, pushing the price higher, increasing aggregate interest in bitcoin and creating demand for stablecoins like USDT to buy them. Another flywheel effect can be seen in the IPO market. Circle’s (CRCL) successful IPO was followed with several companies filing to go public, such as Grayscale, BitGo, Bullish and Gemini. A wave of successful IPOs grows the total investable universe of companies, broadening its appeal and accelerating its inclusion in traditional portfolios and indexes. A flywheel is, by its nature, something that creates a positive feedback loop. What happens when things reverse? Let’s start with those digital asset treasury companies. Some have taken on leverage. If their shares fall or the underlying asset declines, they will need to sell assets to meet these liabilities. That will put downward pressure on their stock and the underlying asset, like bitcoin. Right now, IPOs are acting as a tailwind, but if the cycle lasts long enough, all sorts of businesses will try to tap the markets. If they fail to meet expectations, investors may write off the whole sector for a time, as they did during the dot-com crash. That will have a chilling effect on everything. Currently, ETH treasury companies are buying ETH, driving the price higher. However, as the price rises, ETH holders are queuing up to sell their staked ETH. The higher the price goes, the more that may come free-trading. That’s putting the brake on the flywheel. In the end, the good times can’t last forever. Markets are cyclical, and this one will come to an end. But right now, the (fly)wheels are in motion, and everyone from regulators to public companies to crypto founders and institutional investors are nudging that wheel. It will take a lot to stop their momentum. – Alex Tapscott, managing director, Ninepoint Capital Digital Asset Group Unknown block type “divider”, specify a component for it in the `components.types` option Ask an Expert Q. Is it a good time to invest in crypto IPOs? A. The short answer is yes. While the success of Circle, which exceeded expectations with precedent-setting gains, stood out, overall market sentiment remains highly favourable. The launch of spot BTC and ETH ETFs in the US has brought a significant capital influx. Regulatory clarity in major markets like the U.S. and Europe has boosted investor confidence in asset issuers who now follow established listing procedures and operate with legitimised governance frameworks. Add to this the ongoing bull run, and investors are seeing a robust opportunity for long-term value creation. Q. What type of crypto IPOs should investors focus on? A. More than token prices, investors should focus on the project’s fundamentals and core propositions. Projects with robust, foolproof, clearly drafted business models, realistic plans, and defined revenue streams will perform better. These may include stablecoins, custody services, and staking platforms at the primary level. On a secondary level, fintech, infrastructure, and analytics-related projects are also expected to yield well. The founder and leadership team play a crucial role, which implies better fund management and ongoing innovation. With adoption surging, advisory services can help investors identify the best-positioned projects in a growing field. Q. What are the prospects of crypto IPOs? A. The crypto market has matured, and institutional adoption is rising. In the near future, crypto-asset issuers are expected to become more structured and efficient in accessing traditional capital markets. If the positive trend continues, investor confidence in high-risk-high-return opportunities will also grow. Issuers are now more confident in going public. However, investors should approach with prudence. Crypto IPOs are best treated as high-risk components within a well-diversified portfolio. Retail

New York’s top financial regulator has fined Paxos, a New York City-based stablecoin issuer, $26.5 million for “systemic failures” in its compliance and anti-money laundering programs, including a past partnership with global crypto exchange Binance, according to a Thursday announcement. In addition to the fine, Paxos agreed to spend another $22 million improving its compliance program to bring it up to snuff with the New York Department of Financial Services’ (NYDFS) standards. “The Department of Financial Services has led the nation in regulating the virtual currency industry, protecting consumers and markets through examinations, supervision, and where necessary, enforcement,” NYDFS Superintendent Adrienne Harris said in a press statement. “Regulated entities must maintain appropriate risk management frameworks that correspond to their business risks, which includes relationships with business partners and third-party vendors. The Department continues taking significant steps to ensure accountability, in turn protecting consumers and safeguarding the integrity of the financial system.” The compliance failures identified by NYDFS were largely tied to Paxos’ one-time partnership with Binance, the world’s largest crypto exchange. The two companies teamed up in 2019 to issue Binance’s dollar-pegged stablecoin, BUSD. The relationship with Binance eventually landed Paxos in hot water: in 2023, NYDFS launched an investigation into Paxos’s issuance of BUSD, the U.S. Securities and Exchange Commission (SEC) sent Paxos a Wells notice informing the company of its intention to sue (a year later, the SEC decided to drop its enforcement action) and Paxos ultimately decided to stop issuing BUSD altogether at the order of NYDFS. The fine announced Thursday is tied to NYDFS’ original investigation. According to NYDFS’ press release, the investigation revealed that Paxos didn’t have appropriate controls in place to effectively monitor for illicit activity occurring through Binance. And when illicit activity was identified, the regulator said, the company “failed to escalate red flags” to Paxos’ higher-ups and board members. In addition to the Binance-related compliance issues, NYDFS said its investigation into Paxos turned up other deficiencies in its compliance program, including an “unsophisticated” Know Your Customer (KYC) program that allowed illicit actors to open multiple accounts and remain undetected, and a “deficient” transaction monitoring system that prevented Paxos from “detecting obvious patterns of money laundering.” A representative for Paxos described the compliance failures identified by NYDFS as “historical issues that were identified over two and a half years ago and have since been fully remediated.” The issues, the representative added, “had no impact on customer accounts and there was no consumer harm.” “This marks the resolution of this matter and we are pleased to put it behind us,” the representative said. “There are no new claims regarding Paxos’ relationship with Binance or the issuance of BUSD, and Paxos’ other white-labeled stablecoins operate on similar models with different partners and have not faced any regulatory issues.” Powered by WPeMatico