Gate Daily: Trump allows BTC to enter the $12.5 trillion 401K market; SEC ends XRP legal dispute

Bitcoin (BTC) rebounded before the weekend, temporarily reporting around $117,580 during the Asian session today (8). U.S. President Trump opened up the $12.5 trillion 401K market, allowing Crypto Assets and private sale to enter, unlocking the private market for 90 million savers. Trump signed an executive order aimed at preventing federal regulators from targeting Financial Institutions that have business dealings with the encryption industry. The U.S. Securities and Exchange Commission (SEC) ended its legal dispute with Ripple, with both parties waiving their appeals, and the rulings related to Ripple (XRP) remain unchanged.

Today's Outlook

1. China's M2 Money Supply (YoY) at the end of July was 8.3%, previous value.

2. St. Louis Fed President Bullard delivered a speech.

Macroeconomic Events & Crypto Circle Hotspots

1. President Donald Trump will sign an executive order later on Friday directing federal regulators to streamline legal avenues for 401K plans to include private equity, real estate, encryption, and other alternative assets. According to a Bloomberg report, the directive calls for the Department of Labor to reassess fiduciary guidance under the Employee Retirement Income Security Act (ERISA) and coordinate with the SEC and the Treasury Department to provide a wider range of investment channels for defined contribution plans. This move positions approximately $12.5 trillion in U.S. retirement savings as a potential pipeline for asset management companies that have long been restricted to retail allocation pools. While traditional 401K plans still focus on publicly traded stocks and bonds, this government directive will mark the broadest policy shift to date, incorporating alternative assets, including digital currencies, into mainstream retirement products. The directive builds on a series of measures since early 2025 that have gradually removed previous regulatory constraints. In May of this year, the Department of Labor rescinded a compliance bulletin from 2022 that warned fiduciaries against offering encryption in retirement menus without enhanced scrutiny.

2. Trump stated that he will nominate Stephen Miran, the chairman of the Council of Economic Advisers, to temporarily replace Adriana Kugler on the Federal Reserve Board following her resignation effective Friday. Trump posted on social media on Friday that Miran will serve on the Federal Reserve until January 31, 2026, and the White House will "continue to search for a permanent successor." Reports indicate that the president has been weighing options including Economic Adviser Kevin Hassett, former Federal Reserve Governor Kevin Warsh, and two other candidates to succeed Kugler before the weekend. The next Federal Reserve Governor will have a significant impact on U.S. monetary policy, including federal interest rates. Following Kugler's resignation on August 1, the nomination of a new Federal Reserve Governor must be approved by the Senate. The reasons for Kugler's departure have not been disclosed.

3. On Thursday, U.S. President Trump signed an executive order aimed at preventing federal regulators from targeting financial institutions that conduct business with the cryptocurrency industry. A White House briefing stated that the digital asset industry has become an unfair target for "de-banking," which undermines public trust in banks and regulators, affects livelihoods, freezes wages, and imposes heavy economic burdens on law-abiding Americans. The order eliminates "reputational risk" as a reason for regulatory enhancement, although it is not specifically aimed at cryptocurrencies, it has previously been cited as a reason for targeting the industry. Previously, cryptocurrency companies and individuals complained about banks unfairly closing accounts, and Trump promised to end "Operation Choke Point 2.0." After Trump signed the order, he received support from Republican lawmakers. House Financial Services Committee Chairman French Hill called it an important step, and Senator Cynthia Lummis praised the order for bringing transparency and accountability to the industry.

4. A significant legal dispute in the crypto industry seems to be approaching its conclusion. The U.S. Securities and Exchange Commission (SEC) and Ripple Labs' attorneys jointly agreed to withdraw the appeal request in the Second Circuit Court of Appeals. The joint motion to dismiss submitted on Thursday shows that both parties will bear their own costs. Previously, Ripple Labs CEO Brad Garlinghouse announced in June that the company intended to withdraw its cross-appeal, stating that they wanted to "turn the page and focus on building the value internet." Now both parties have abandoned the appeal, and Judge Analisa Torres' mixed ruling from 2023 will become the final decision. The ruling found that the hundreds of millions of dollars in XRP sold by Ripple Labs to institutional investors constituted illegal securities sales, but she sided with Ripple Labs on the issue of "dark pool" sales to retail investors.

Market Trend

1. $BTC has pulled back from last night's high, currently reported around 117,580 USD, with liquidations of 54.18 million USD in the past 24 hours, mainly from short positions;

2. U.S. President Trump announced on Wednesday that a 100% tariff would be imposed on imported semiconductor chips, excluding companies "produced in the U.S." The U.S. stock market rose on Thursday (August 8) at one point but experienced significant fluctuations, closing mixed. The Dow Jones Industrial Average fell by 224 points, a decrease of 0.51%, the S&P 500 dropped by 0.08%, the Nasdaq rose by 0.35%, and the Philadelphia Semiconductor Index increased by 1.5%.

3. In the Gate BTC/USDT liquidation map, based on the current price of 116,866.70 USDT, if it drops to around 115,137 USD, the cumulative liquidation amount for long positions exceeds 301 million USD; if it rises to around 117,661 USD, the cumulative liquidation amount for short positions exceeds 105 million USD. The liquidation amount for shorts is significantly lower than that for longs, so it is recommended to reasonably control the leverage ratio to avoid triggering large-scale liquidations during market fluctuations.

(Source: Gate)

4. In the past 24 hours, BTC spot inflow was 1.94 billion USD, outflow was 1.81 billion USD, and net inflow was 130 million USD.

(Source: Coinglass)

5. In the past 24 hours, contracts such as $SOL, $LTC, $ENA, $BNB, and $TST have seen a net outflow, indicating trading opportunities.

(Source: Coinglass)

News Updates

1. Animoca Brands and ProvLabs jointly launched the RWA trading platform NUVA.

2. PumpFun launches the Glass Full Foundation to inject liquidity into specific ecosystem tokens.

3. Trump nominates pro-crypto Stephen Miran for a seat on the Federal Reserve Board.

4. Fundamental Global plans to issue up to $5 billion in securities to purchase more Ethereum.

5. Block increased its holdings by 108 Bitcoins in Q2, raising its total to 8,692 coins.

6. The SEC and Ripple end legal dispute: Both parties abandon appeals, and the XRP-related rulings remain unchanged.

7. Trump signed an executive order to stop the unfair treatment of the crypto industry being cut off from banking services.

8. USDC Treasury issued 100 million USDC on the Ethereum chain.

9. Bitwise Research Director: If Crypto Assets are included in 401(k), it could attract up to $800 billion in capital inflow.

10. Report: Waller Becomes a Leading Candidate for the New Chair of the Federal Reserve

11. Plasma and Aave jointly launched the first on-chain fund specifically designed for institutions.

X KOL Selected Insights

Phyrex Ni (@Phyrex_Ni): "Today's task has become a bit simpler, mainly because the opening of 401K has raised market expectations. This is no less significant than the initial positive news from Bitcoin through the spot ETF, and it may even be more important than the effects driven by the ETF, considering there are nearly 9 trillion dollars in assets. Even if only 10% enters the Crypto Assets space, it would double the overall market cap set by ETHH. Of course, 401K cannot invest in just anything, and right now it is merely Trump's proposal. It still needs to pass some hurdles, and even if it does, the only Crypto Assets that can be invested in through 401K are compliant ones, which means the spot ETF, and direct purchases of BTC or ETH are not allowed. More importantly, the investments in 401K are usually focused on long-term holding, with very little short-term operation involved. This is not only similar to the current BTC and ETH ETFs, but the holding in 401K is also more sustained, helping Bitcoin transition from a highly volatile asset to a long-term value storage tool. Secondly, there have been significant changes regarding Trump's selection for the Federal Reserve board members. Waller, who previously received no response from his distant calls, suddenly became a favorite within Trump's team. However, Waller has not yet met Trump. Today, Waller's odds on Kalshi surged to 50%. Although I do not know if Waller will definitely be elected, I truly believe he is currently the best disruptor for the Federal Reserve. His greatest advantage over the two Kevins is that Waller has already worked at the Federal Reserve for four years and is more aware of who can become allies, who can be pulled in, and who can be enemies compared to the two Kevins."

"Looking back at Bitcoin's data, today's turnover rate has seen a slight increase, mainly driven by Trump's confidence in the crypto market, even showing a divergence from the U.S. stock market. Although many believe Trump is the biggest troublemaker, it cannot be denied that without him, the current interest in BTC in the U.S. might not be as high as it is now. Short-term investors are still the main source of today's turnover, with more investors holding positions below $110,000 remaining in a wait-and-see mode, and both support levels remain very solid. I'm still holding onto my long position; today there was even a slight profit at one point, but I haven't reduced my holdings yet because I think the positive news Trump is preparing to release is not over."