Trump Opens 401(k)s to Bitcoin, Names Crypto Advocate to Fed Board

Trump to Sign Executive Order Banning Political Debanking, Targets Crypto Discrimination and Bank Penalties

U.S. President Donald Trump announced plans to sign an executive order that would ban financial institutions from denying services based on customers’ political or religious beliefs. The directive instructs federal banking regulators to eliminate “reputational risk” language from their guidance, a term critics say has been used to justify cutting off access to crypto firms and politically aligned individuals.

The order targets what conservatives label “Operation Chokepoint 2.0,” a practice allegedly used under the Biden administration to debank crypto companies. Regulators will be required to review past and current policies that may have enabled politicized or unlawful account closures, and penalize violations of equal credit and consumer protection laws.

Trump also publicly criticized JPMorgan Chase and Bank of America for allegedly cutting ties with him after his first term, framing the order as part of a broader push to prevent financial discrimination. JPMorgan stated it doesn’t close accounts for political reasons but supports regulatory reform.

Paxos Settles for $48.5 Million Over Binance Ties, NY Regulator Cites $1.6 Billion in Illicit Crypto Transactions

Paxos Trust has agreed to a $48.5 million settlement with New York’s Department of Financial Services (NYDFS) over compliance failures tied to its former partnership with Binance. The agreement includes a $26.5 million civil fine and $22 million allocated to strengthen Paxos’ compliance systems.

The NYDFS found Paxos failed to monitor illicit activity on Binance’s platform, including $1.6 billion in transactions linked to Ponzi schemes, darknet operators, and sanctioned entities between 2017 and 2022. The regulator also criticized Paxos for failing to escalate red flags and maintaining a weak anti-money laundering framework.

In 2023, New York ordered Paxos to stop issuing Binance USD (BUSD), leading Paxos to end the partnership. Though Binance was not named in this case, it previously paid a $4.32 billion penalty after a federal criminal investigation. The SEC later dropped its civil case against Binance under the Trump administration’s evolving crypto stance.

Trump Signs Executive Order Allowing Bitcoin and Private Equity in 401(k)s, Opening $8.9 Trillion Market to Crypto and Alt Funds

President Donald Trump signed an executive order on Thursday enabling 401(k) retirement plans to include cryptocurrencies like Bitcoin and Ether, private equity funds, and other alternative assets. The order directs the U.S. Department of Labor and the SEC to revise rules that have historically discouraged such investments, citing diversification and potential returns.

Bitcoin rose 1.4% to $117,000 following the announcement, while Ether jumped 4.7%. The move is a major victory for private equity firms and crypto companies, potentially unlocking access to the $8.9 trillion held in 401(k) plans.

Previously, Labor Department guidance under the Biden administration had warned plan sponsors to avoid crypto exposure, deterring widespread adoption. Although legal clarity may take years to develop, the order represents a major policy shift and accelerates the push to mainstream alternative assets in retirement portfolios.

Trump Appoints Crypto-Friendly Stephen Miran to Federal Reserve Board, Filling Seat Vacant Until 2026

President Donald Trump has nominated Stephen Miran, a crypto-supportive economist and current chair of the Council of Economic Advisers, to the Federal Reserve Board of Governors. Miran will serve until January 31, 2026, replacing Adriana Kugler, who resigned to return to Georgetown University.

Miran has publicly advocated for streamlined cryptocurrency regulations and previously commented on high-profile enforcement cases, including Binance’s $4 billion settlement and FTX’s collapse. His background includes roles at the U.S. Treasury, Fidelity Investments, and investment firm Hudson Bay, which has traded FTX bankruptcy claims.