A Republican lawmaker in the US House of Representatives has introduced legislation to make one of President Donald Trump’s executive orders — which allows alternative assets such as cryptocurrencies in 401(k) retirement plans — a permanent part of federal law.
Representative Troy Downing presented the draft bill before the House Financial Services Committee, aiming to codify Executive Order 14330 and give it lasting legal authority.
The move, first reported by Politico, would mark a significant step toward integrating digital assets into mainstream retirement investment options.
Trump’s Executive Order on Retirement Options
Executive Order 14330, signed by Trump on August 7, directs that every American planning for retirement should have access to funds that include “alternative assets” when deemed suitable by a fiduciary overseeing the plan.
The order defines alternative assets broadly — including private market investments, real estate, commodities, infrastructure projects, lifetime income strategies, and digital assets through actively managed investment vehicles.
Although executive orders set federal priorities, they do not carry the permanence of law and can be overturned by subsequent administrations or court rulings.
To make such policies enduring, Congress must pass a bill approved by both chambers and have it signed into law.
Legislative Push Continues Despite Shutdown
Despite an ongoing government shutdown, Congress remains able to introduce and debate new legislation.
Trump’s executive order also instructed the Department of Labor, the Securities and Exchange Commission (SEC), and the Treasury Secretary to review and prioritize new guidance for 401(k) plans within six months.
The goal is to expand access to diversified retirement investment strategies, including exposure to digital and alternative assets.
Expanding Crypto Access for Retirement
The initiative to include digital assets in US retirement accounts has been building momentum throughout 2025.
Earlier this year, the Department of Labor withdrew Biden-era guidance warning fiduciaries to be “extremely cautious” about including crypto in retirement portfolios.
In September, shortly after Trump’s executive order took effect, nine lawmakers sent a letter to SEC Chair Paul Atkins urging faster implementation.
They argued that doing so could “help the 90 million Americans that are currently restricted from investing in alternative assets to secure a dignified, comfortable retirement.”
According to data from the Investment Company Institute (ICI), Americans held $9.3 trillion in 401(k) assets as of June 30, 2025 — highlighting the potential scale of impact if digital assets become a standard investment option.
Industry Divided on Crypto’s Role in 401(k)s
The proposal has sparked debate among financial experts.
Critics warn that crypto’s volatility could endanger retirement savings, while supporters see it as an important step toward financial modernization.
André Dragosch, head of European research at Bitwise, told Cointelegraph in August that the inclusion of cryptocurrency in US retirement plans “could mark a major step for Bitcoin adoption and attract billions in new capital.”
Bitcoin’s price turbulence continued Friday after briefly plunging to $102,000, as traders reacted to U.S. President Donald Trump’s announcement of a 100% tariff on Chinese imports.
Swan Bitcoin CEO Cory Klippsten said the market should brace for more instability in the days ahead, warning that macroeconomic forces are likely to keep influencing Bitcoin’s short-term movements.
“If the broader risk-off mood holds, Bitcoin can get dragged around a bit before it finds support and starts to decouple again,” Klippsten said.
Market Wipeout Follows Tariff Announcement
The crypto market saw over $8 billion in long liquidations within 24 hours, according to CoinGlass data.
Bitcoin alone accounted for around $2.19 billion in liquidations, wiping out leveraged positions as prices fell sharply across exchanges.
“We’ve got a little panic in the markets right now, classic macro whiplash. Trump and China are trading tariff threats, equities are off, and traders are scrambling to derisk,” Klippsten added.
Ray Salmond, head of markets at Cointelegraph, said many traders “were totally caught off guard” by the speed of the sell-off. He described the tariff announcement as having “sent shockwaves across the crypto market.”
At the time of writing, Bitcoin had rebounded slightly, trading near $113,270, according to CoinMarketCap.
Cascading Liquidations Across Exchanges
Salmond highlighted how the price divergence between major trading platforms underscored the severity of the liquidation cascade.
On Coinbase, the BTC/USD pair hit a low of $107,000, while Binance’s perpetual futures saw Bitcoin fall to $102,000.
“The dislocation really illustrates the severity of the cascading liquidations and how stops were completely obliterated,” Salmond explained.
He referenced data from Hyblock, which revealed that nearly all downside long liquidity had been absorbed, leaving a liquidation cluster between $102,000 and $97,000.
Tariffs and Past Price Reactions
This isn’t the first time a tariff announcement from Trump has rattled the crypto markets.
In April, similar trade measures triggered fears of a global slowdown and sent Bitcoin tumbling.
On February 1, after Trump signed an executive order imposing tariffs on goods from China, Canada, and Mexico, Bitcoin briefly dipped below $100,000.
Analysts View Dip as Opportunity
Despite the turmoil, some analysts see the correction as a healthy market reset.
Bitwise Invest’s senior investment strategist Juan Leon noted that “the best time to buy BTC has tended to be when it is being dragged down by broader markets.”
Matt Hougan, chief investment officer at Bitwise, reminded investors that buying during pullbacks is rarely comfortable but often beneficial.
“It never feels good when you buy the dip. The dip comes when sentiment drops. Writing the number down can be a good form of discipline,” Hougan said.
Bitcoin’s sharp swings remain tied to macro events, but analysts maintain that the long-term outlook for the cryptocurrency remains intact.
Crypto.com CEO Kris Marszalek has called for a regulatory review of crypto exchanges following an unprecedented $20 billion in market liquidations within just 24 hours.
In a post on X (formerly Twitter) on Saturday, Marszalek urged authorities to “conduct a thorough review of fairness of practices,” questioning whether trading platforms had malfunctioned or failed to uphold compliance during the sell-off.
“Regulators should look into the exchanges that had most liquidations in the last 24 hours,” Marszalek wrote. “Any of them slowing down to a halt, effectively not allowing people to trade? Were all trades priced correctly and in line with indexes?”
Data from CoinGlass shows that Hyperliquid led the market with $10.31 billion in liquidations, followed by Bybit with $4.65 billion and Binance with $2.41 billion. Other platforms including OKX, HTX, and Gate reported smaller figures of $1.21 billion, $362.5 million, and $264.5 million, respectively.
Binance faces backlash after user losses
The wave of forced liquidations came alongside a separate issue at Binance, where several tokens—including Ethena’s USDe, BNSOL, and WBETH—experienced a price depeg, triggering unexpected losses for some traders.
Binance said it is reviewing affected accounts and will offer “appropriate compensation measures” where platform errors are confirmed.
One trader claimed that the exchange mistakenly closed a short position while keeping a long open, resulting in total losses. The user argued the issue was unrelated to Binance’s auto-deleveraging system and noted that similar trades on other platforms had not been affected.
Binance co-founder Yi He publicly apologized, acknowledging the “significant market fluctuations and a substantial influx of users.” She confirmed that Binance will compensate users for losses caused by confirmed technical errors but clarified that “losses resulting from market fluctuations and unrealized profits are not eligible.”
Crypto market wipeout surpasses historical crashes
According to data compiled by crypto analyst Quinten François, the recent $19.31 billion in liquidations surpassed previous market downturns by a wide margin. For comparison, the COVID-19 crash saw $1.2 billion in liquidations, while the FTX collapse led to $1.6 billion—making the latest event more than ten times larger than any prior wipeout.
Trump’s tariffs spark fresh market volatility
The timing of the crash coincided with U.S. President Donald Trump’s announcement of new economic measures, including 100% tariffs on all Chinese imports beginning November 1.
The move was a response to China’s recent restrictions on rare earth mineral exports, which are essential to global manufacturing and technology sectors. Beijing stated that any product containing more than 0.1% Chinese rare earth content will require an export license starting December 1.
Trump denounced the policy as “a moral disgrace” and suggested he might cancel a planned meeting with Chinese President Xi Jinping at the APEC summit.
The combination of geopolitical tension, unprecedented liquidations, and technical issues across major exchanges has reignited concerns about the stability and transparency of the cryptocurrency market—raising pressure on regulators to ensure fair trading practices in a rapidly evolving landscape.
Bit Digital has strengthened its Ethereum position, purchasing 31,057 ETH worth around $140 million, bringing its total holdings to over 150,000 ETH.
The deal, funded through proceeds from a $150 million convertible notes sale, establishes Bit Digital as the sixth-largest public Ether holder, according to StrategicETHReserve.xyz.
“This purchase demonstrates our commitment to building shareholder value by financing ETH accumulation on terms that are accretive to NAV per share,” said Sam Tabar, CEO of Bit Digital. “We view ETH as foundational to digital financial infrastructure and believe current levels provide a compelling long-term entry point.”
The notes were issued at $4.16 per share — an 8.2% premium to the company’s mark-to-market net asset value (mNAV) at the time. The offering attracted interest from well-known crypto institutions, including Kraken Financial, Jump Trading Credit, and Jane Street Capital.
Firm Joins Elite List of ETH Treasuries
Following the transaction, Bit Digital now holds approximately 150,244 ETH.
This ranks it just below PulseChain Sac (160,900 ETH) and the Ethereum Foundation (222,720 ETH). The largest holders include The Ether Machine (496,710 ETH), SharpLink Gaming (838,730 ETH), and Bitmine Immersion Technologies, which leads with 2.83 million ETH.
According to data from StrategicETHReserve.xyz, Bit Digital’s mNAV was $3.84 per share in late September, supported by $512.7 million in Ethereum and $723.1 million in shares of its majority-owned subsidiary, WhiteFiber Inc.
Tabar noted that the company intends to keep expanding its ETH position “in a cost-effective manner,” with a continued focus on building long-term net asset value for shareholders.
Ethereum’s Growing Institutional Demand
The acquisition highlights a broader trend of institutional confidence in Ethereum.
SharpLink Gaming, another major corporate holder, has seen its Ether reserves rise to nearly $4 billion, with unrealized profits exceeding $900 million. The company began its accumulation in June and is now the second-largest institutional ETH holder.
Collectively, reserve companies and ETFs now hold about 12.6 million ETH — roughly $56.4 billion — accounting for over 10% of Ethereum’s circulating supply.
Ether remains the second-largest crypto asset in corporate treasuries after Bitcoin, which has around 4 million BTC valued at approximately $500 billion.
Cryptocurrency investment products have recorded their highest-ever weekly inflows, fueled by investor concerns over US government stability and the ongoing rally in spot crypto markets.
According to CoinShares, global crypto exchange-traded products (ETPs) saw $5.95 billion in inflows during the week ending Friday, setting a new record.
Factors Behind the Surge
James Butterfill, CoinShares’ head of research, attributed the unprecedented inflows to several macroeconomic factors.
“We believe this was due to a delayed response to the FOMC [Federal Open Market Committee] interest rate cut, compounded by very weak employment data […], and concerns over US government stability following the shutdown,” he said.
Bitcoin, the largest cryptocurrency by market capitalization, hit a new historic high above $125,000 on Saturday, coinciding with the surge in inflows.
Bitcoin ETPs Lead the Pack
The $5.95 billion inflows surpassed the previous record of $4.4 billion from mid-July by 35%, underscoring the scale of investor interest.
Unlike the earlier record, which was almost evenly split between Bitcoin and Ether, this time Bitcoin dominated inflows, attracting a record-breaking $3.6 billion.
“Despite prices closing in on all-time highs during the week, investors did not choose to buy short investment products,” Butterfill noted.
Ether ETPs still posted strong results, drawing $1.48 billion in inflows and pushing year-to-date totals to $13.7 billion — nearly three times last year’s figure.
Solana ETP inflows ranked third at $706.5 million, while XRP products added $219.4 million, both setting their own records.
Total Assets Under Management Reach New High
In line with these inflows, the total assets under management (AUM) in crypto funds surged past $250 billion for the first time, hitting $254.4 billion.
This milestone signals renewed institutional and retail investor confidence in cryptocurrency-based products.
ETF Launches Continue Despite Shutdown Concerns
The record-setting week for crypto ETPs unfolded even as the US Securities and Exchange Commission (SEC) shut down operations last week due to a government shutdown.
This development raised concerns about potential delays for high-profile exchange-traded fund (ETF) approvals expected in October.
According to Crypto in America’s Eleanor Terrett, the SEC retains the ability to act on fraud and market emergencies during the shutdown but is widely expected to experience routine delays.
“It’s like a rain delay,” Bloomberg’s senior ETF analyst Eric Balchunas commented.
Despite these concerns, Grayscale Investments, the second-largest US crypto ETF provider after BlackRock, launched two new staking-focused products on Monday.
Staking-Focused ETFs Arrive
The Grayscale Ethereum Mini Trust ETF (ETH) and the Grayscale Ethereum Trust ETF (ETHE) now allow investors to receive additional staking rewards alongside gains from the funds’ market performance.
These launches highlight the continued innovation in crypto investment products, even amid regulatory and operational uncertainties in the United States.
The combination of record inflows, rising asset prices, and new product launches underscores a bullish environment for digital asset investment vehicles.
Bitcoin miner CleanSpark ended September with 13,011 BTC in its treasury, reflecting stronger efficiency and output compared to the previous year.
The company’s monthly production rose 27% from September 2024, mining 629 BTC and selling 445 BTC for approximately $48.7 million at an average price of $109,568.
In its Friday update, CleanSpark reported that its fleet efficiency improved 26% year over year, while its average operating hashrate for the month reached 45.6 EH/s.
Push for Financial Independence
CleanSpark has been selling a portion of its monthly Bitcoin production since April as part of its strategy to become financially self-sufficient.
It also opened an institutional Bitcoin trading desk to facilitate these sales.
In August, the company generated $60.7 million from the sale of 533.5 BTC, demonstrating the scale of its operations.
The miner’s shares on Nasdaq rose 5.28% following the report and gained more than 23% over the week, according to Yahoo Finance.
The broader market has also been buoyant.
The market capitalization of 15 major publicly traded Bitcoin miners reached a record $58.1 billion in September, up from $41.6 billion in August and more than double the $19.9 billion recorded in March, according to The Miner Mag.
Challenges Ahead for Bitcoin Miners
Despite investor enthusiasm for mining stocks, the industry faces increasing headwinds.
Higher energy costs and the risk of tariffs on imported mining equipment could weigh on profitability.
In August, The Miner Mag reported that U.S. Customs and Border Protection alleged some of CleanSpark’s 2024 mining rigs were manufactured in China.
This could leave the company with potential tariff liabilities of up to $185 million.
Iris Energy (IREN), the largest Bitcoin miner by market capitalization, is also contesting a separate $100 million tariff dispute with the agency.
According to Cointelegraph, the effective duty on China-made mining rigs stands at 57.6%, while machines imported from Indonesia, Malaysia, and Thailand face tariffs of 21.6%.
Rising Mining Difficulty
Bitcoin mining difficulty reached record highs in September and October.
This means miners now expend more computing power and energy to produce the same amount of Bitcoin, putting further pressure on operational costs.
CleanSpark’s push for efficiency and its growing BTC reserves highlight its determination to navigate these challenges while maintaining financial independence.
Calls for the United States to establish a national Bitcoin (BTC) strategic reserve have sparked concern among market watchers, who warn of potential disruptions to both cryptocurrency prices and the U.S. dollar.
Haider Rafique, global managing partner for government and investor relations at crypto exchange OKX, argues that concentrating large amounts of BTC on a government balance sheet could undermine Bitcoin’s core appeal as neutral, decentralized money.
He posed a pointed question: “What happens in a few years if a new administration decides this was a bad idea?”
Rafique added, “Despite recent bipartisan support for crypto, it is essential to remember that administrative policies can change quickly. As circumstances change over time, the concentration of large amounts of BTC on a country’s balance sheet could represent a liquidation risk.”
Government Ownership Could Distort Markets
Rafique warns that governments holding significant portions of the BTC supply would be able to manipulate prices by selling large amounts at once.
Such a move could shock markets and undercut investor confidence in the cryptocurrency’s independence from state control.
Germany’s sale of 50,000 BTC in 2024, which helped keep prices below $60,000, serves as an example of how government action can weigh on the market, Rafique said.
Impact on the Dollar and Financial Markets
Beyond crypto itself, a U.S. Bitcoin reserve could signal weakness in the dollar, which underpins global finance.
Rafique warned that establishing a BTC reserve “would be a loss of confidence in the dollar.”
He argued that building a strategic reserve would tell investors the U.S. currency cannot sustain its value solely on economic fundamentals.
This could push investors to safe havens like gold or the Swiss franc while sparking sell-offs of riskier assets.
Rafique predicted such a chain reaction could trigger cascading liquidations across financial markets, ending in a sharp downturn as participants respond to a seismic shift in global finance.
Clashing with Bitcoin’s Original Ethos
Bitcoin advocates have long promoted the idea of nation-state-level treasuries as a path to making the cryptocurrency the global reserve asset.
However, critics warn that state-level control conflicts with Bitcoin’s decentralized design.
Centralized ownership could weaken its credibility as a currency that transcends politics and national boundaries.
Timing and Strategy Questions Remain
Some proponents argue a U.S. reserve would strengthen America’s monetary position and accelerate Bitcoin’s adoption as a unit of account.
But others urge caution, citing political risk and the volatility of the cryptocurrency market.
Without clear rules for accumulation and liquidation, a government reserve could transform from a strategic asset into a destabilizing liability.
As debate intensifies, policymakers face the challenge of integrating Bitcoin into national policy without compromising its foundational principles or global market stability.
Grayscale has suggested that the third quarter of 2025 may have represented a unique form of “alt season,” with altcoins outperforming Bitcoin and other major assets.
In its latest report, the asset manager noted that while cryptocurrencies across sectors posted positive returns, the pattern stood out for being distinct from traditional altcoin cycles.
“Bitcoin underperformed other market segments, and the pattern of returns could be considered a crypto ‘alt season’ — although distinct from other periods of falling Bitcoin dominance in the past,” the report explained.
Altcoins tied to smart contracts were particular beneficiaries, supported in part by the passage of the GENIUS Act in the US earlier this year.
Meanwhile, AI-related tokens and other niche sectors saw growth, while Bitcoin, Ether, and broader currency plays lagged.
Market Shifts Driven by Policy and Exchanges
Grayscale highlighted several trends that shaped Q3.
One was the growing number of corporate treasuries adding various tokens to their balance sheets.
Another was the increasing adoption of stablecoins in the United States, alongside stronger activity on centralized exchanges.
The firm argued that these elements combined to create a distinct market environment in which altcoins found momentum at Bitcoin’s expense.
Looking ahead, Grayscale speculated that pending legislation, including a digital asset market structure bill in Congress, could further support crypto markets in Q4.
Bitcoin’s Relative Underperformance
Although Bitcoin surged to a record high above $120,000 in August, its performance lagged other segments of the market.
Analysts suggested that both Bitcoin and altcoins were also trailing behind traditional assets such as gold and equities in reaching new records.
Stablecoin outflows from exchanges were cited as one factor weighing on crypto market dynamics.
This environment left altcoins better positioned to capture gains while Bitcoin’s dominance eased.
Optimism for ETFs
As a leader in crypto exchange-traded funds (ETFs), Grayscale noted that regulatory developments could provide a further boost.
The US Securities and Exchange Commission (SEC) recently approved new listing standards for digital asset ETFs.
One of Grayscale’s own products, a multi-asset crypto ETF, has already gained regulatory approval, giving investors exposure to a basket of leading assets including BTC, ETH, XRP, Solana, and Cardano.
The report concluded that optimism around ETFs and supportive legislation may sustain momentum for altcoins and the broader market heading into the final quarter of the year.
The FTX Recovery Trust has confirmed plans to distribute a new round of reimbursements to creditors, marking another significant milestone in the ongoing effort to compensate those impacted by the collapse of the exchange.
The entity, which was established to handle repayments after the platform’s bankruptcy, said the latest tranche will be worth around $1.6 billion. The distribution is scheduled for September 30, with creditors expected to see funds arrive in their accounts within three business days of the payment date.
Breakdown of September’s Distribution
According to details shared by the trust, the payout will be distributed across different categories of claims.
Dotcom Customer claims will receive a 6% payout.
US Customer Entitlement Claims will see a 40% distribution.
General Unsecured Claims and Digital Asset Loan Claims will receive a 24% share.
Convenience claims, which are capped at smaller amounts, will benefit from a 120% reimbursement as part of this latest tranche.
This distribution follows two earlier payouts, which began earlier this year.
In February, the trust released $1.2 billion to claimants, followed by a much larger $5 billion payout in May.
Assets Set Aside for Creditors
The FTX Recovery Trust has earmarked up to $16.5 billion to settle claims from creditors and former customers.
The scale of these reimbursements reflects both the size of the exchange prior to its downfall and the magnitude of losses suffered when the company entered bankruptcy.
The collapse of FTX in 2022 had a seismic effect on the cryptocurrency market.
The event deepened the bear market that was already underway, eroding confidence in digital assets and sparking greater scrutiny from regulators worldwide.
Even today, traders and investors watch developments around repayments closely, given the potential impact large inflows of capital back into the market could have on prices.
Sam Bankman-Fried’s Conviction and Appeal
The downfall of FTX has been closely tied to its former chief executive, Sam Bankman-Fried.
In November 2023, he was found guilty on seven charges, including wire fraud, wire fraud conspiracy, securities fraud, commodities fraud conspiracy, and money laundering conspiracy.
He was sentenced in March 2024 to 25 years in prison.
Judge Lewis Kaplan, who presided over the trial, described Bankman-Fried’s actions and the collapse of the exchange as a “serious” crime that justified decades of imprisonment.
Bankman-Fried’s attorneys are preparing to appeal the conviction this November.
They have argued that he did not receive a fair trial, claiming he was effectively treated as guilty from the start.
The defense has also asserted that FTX was not truly insolvent and that the company had sufficient funds to meet its obligations and repay customers.
Market Implications
With the third payout approaching, speculation continues over how these distributions might influence the wider crypto sector.
Some analysts believe creditors receiving significant amounts of cash could lead to renewed investment in Bitcoin and other digital assets.
Others caution that creditors may simply choose to exit the market altogether, pocketing their reimbursements instead of reinvesting.
Either way, the September distribution represents another step forward in one of the most closely watched bankruptcies in recent financial history.
Bitcoin entered the new trading week under pressure, with prices circling weekend lows of around $115,000 as investors looked ahead to a pivotal U.S. Federal Reserve meeting.
The world’s largest cryptocurrency avoided sharp volatility but remained on watch for signals that could shape its near-term direction.
Cautious Market Moves
Data from TradingView showed Bitcoin dropping toward $115,000 after peaking at $116,800 during Friday’s Wall Street session — its highest level since late August.
“Pretty clear price is being walked down here yet again going into a new week,” trader Skew wrote on X, adding that there was “some pretty decent bid depth & liquidity just below $115K.”
“Time to pay attention,” he concluded.
Other analysts emphasized that Bitcoin’s short-term goal was not a breakout, but rather regaining stability at key support levels.
Traders Focus on $114K Support
Popular analyst Rekt Capital explained that the immediate task was for Bitcoin to reclaim $114,000 as a firm base.
“The goal isn’t for Bitcoin to break $117k in the short-term,” he wrote.
“The goal is for Bitcoin to reclaim $114k into support first. Because that’s what would enable the premium-buying necessary to get price above $117k later on.”
Despite short-term uncertainty, Rekt Capital maintained that Bitcoin’s bull market remained intact and that fresh all-time highs were likely still ahead.
He added that a weekly close above $114,000 would be considered “bullish.”
Fed Rate Cut Expectations Dominate
Beyond Bitcoin, the spotlight was firmly on the Federal Reserve’s upcoming policy decision.
Markets were near-unanimous in predicting a 0.25% rate cut, a move that could further support risk assets, including cryptocurrencies.
Analysts argued that improving U.S. economic data, looser financial conditions, and broad participation from cyclical industries all point to continued economic expansion.
In a recent update, trading firm Mosaic Asset Company struck an optimistic tone.
“The combination of improving leading indicators, ongoing loose financial conditions, and strong market breadth that includes participation by cyclical industries favors an ongoing economic expansion in my opinion,” its author wrote.
“That supports the earnings outlook which is ultimately good for stock prices at the same time the Fed is set to resume rate cuts. That could make for an excellent trading environment into next year.”