Crypto Currents: Trump to allow crypto in 401(k) plans

As U.S. policy opens new doors for mainstream adoption, a starkly different trend is emerging abroad, where citizens in countries like Bolivia are turning to crypto out of economic necessity. Stay up on the crypto news that matters with “Crypto Currents,” daily from The Fly. Join us 2 PM daily for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio. Also, subscribe to our YouTube channel for the Crypto Fly By weekly recap.

TRUMP TO ALLOW CRYPTO IN 401(K) RETIREMENT PLANS: The White House has confirmed that President Donald Trump will sign an executive order to allow cryptocurrencies to be included in 401(k) retirement plans. The order directs the U.S. Labor Department to reevaluate restrictions on alternative assets, a move that could open the $12.5T retirement market to digital assets. A senior White House official said the directive will call for coordination with the Treasury and the SEC to support the adoption of investments like crypto in retirement products, marking a significant step toward broader retail access and legitimacy for the industry.

WALL STREET DEEPENS BLOCKCHAIN INTEGRATION: JPMorgan’s (JPM) Kinexys blockchain platform is seeing its first use by a clearing firm, as Marex announced it will use the permissioned ledger for 24/7 client settlements with hedge fund Brevan Howard Digital. The move aims to reduce settlement risk, time, and cost. Meanwhile, as institutional use grows, Coinbase (COIN) announced it will levy a 0.1% fee on USDC (USDC) to U.S. dollar conversions over $5M. CEO Brian Armstrong confirmed the fee is designed to counter arbitrage traders who were swapping tether (USDT) to USDC to avoid tether’s own off-ramping fees, a sign of the crypto market’s maturing infrastructure.

GRASSROOTS CRYPTO ADOPTION SURGES IN BOLIVIA AMID ECONOMIC CRISIS: Citizens in Bolivia are increasingly turning to cryptocurrencies like bitcoin and tether to protect their savings and conduct daily commerce, according to a Bloomberg report. Amid a 25% inflation rate, a three-decade high, and a severe difficulty in acquiring U.S. dollars, Bolivians are using crypto for everything from buying coffee to paying international faculty. Digital payments have skyrocketed more than fivefold to nearly $300M in the first half of 2025, just over a year after a decade-long ban was lifted. The trend highlights crypto’s utility as a tool for economic stability in regions failed by traditional financial systems.

OTHER CRYPTO NEWS:

• Digital asset manager Parataxis has agreed to go public via a SPAC merger with SilverBox Corp IV (SBXD) in a deal valued at up to $640M. The new company, to be named Parataxis Holdings, is seeking a listing on the NYSE under the ticker “PRTX” and will pursue a bitcoin treasury strategy in the U.S. and South Korea.
• Bitcoin ETFs snapped a four-day outflow streak, pulling in $91.6M on Wednesday. Analysts suggest the reversal is tied to increased market expectations of a Federal Reserve interest rate cut in September.
• The UAE’s Securities and Commodities Authority and Dubai’s Virtual Assets Regulatory Authority have partnered to unify the country’s crypto regulatory framework, allowing for mutual license recognition and joint supervision.
• South Korean internet giant Kakao’s banking arm, KakaoBank, announced it plans to “actively participate” in the stablecoin market, exploring services like issuance and custody in cooperation with its Stablecoin Task Force.

PRICE ACTION: As of time of writing, bitcoin (BTC) was trading at $116,380.65, while ethereum (ETH) was $3,822.76.