On the back of bitcoin’s exceptional growth over the past week and a flurry of regulatory changes backflipping on Biden-era protectionism, Trump is soon expected to sign an executive order aiming to expand access to private-market investments, such as 401(k)s, for US retirement plans.
Co-founder of Australian crypto exchange platform Coinstash, Mena Theodorou, said if Trump follows through on the plan, it would represent an “unprecedented shift in global markets”.
With US pension funds ranking among the largest capital allocators in the world, Theodorou explained that the impact of such a move would be profound.
“Even a modest allocation of just 1–5 per cent to bitcoin could translate into billions of dollars in new buying demand,” he said.
The move comes after the US passed its first major national cryptocurrency legislation – the GENIUS Act – over the weekend.
Backed by Trump, the bill requires that stablecoins – cryptocurrencies whose value is pegged to a reference asset, such as US$1 – must be fully backed by reserves, such as dollars or equivalent low-risk assets.
The legislation aims to bring clarity to the digital currency sector, fostering its integration into mainstream commerce and financial infrastructure, according to deVere Group CEO Nigel Green.
“For the first time, the US government is not just ‘tolerating’ crypto – it’s codifying it,” said Green.
Once openly hostile to bitcoin, Trump has since shifted his stance to one of support, aligning with the growing political momentum and influence of the industry.
Despite the move receiving some criticism, Green said it is more than political opportunism.
“It’s strategic positioning. Digital assets are now core to economic power, and this legislation is America planting its flag,” he said.
In the short term, Theodorou said the additional announcement to allow retirement funds into crypto could act as a “major tailwind” for bitcoin’s price, as markets may look to front-run the potential inflows, with traders and institutional investors positioning ahead of any formal implementation, driving upward momentum.
In the long-term, he said opening bitcoin to these vast institutional capital pools could significantly speed up its acceptance as a legitimate asset class with the ability to challenge gold’s market cap.
“Currently, bitcoin sits at roughly 10 per cent of gold’s market value. A policy shift of this magnitude could dramatically change that dynamic, potentially much faster than many expect,” said Theodorou.
With new passive capital entering the market, Theodorou said this could boost bitcoin’s price growth and stability, integrating it further into finance and signal a structural shift in global capital allocation, especially given the rising appetite for digital assets.
James Quinn-Kumar, Binance ANZ’s director of community engagement, agrees, adding that the growing confidence in digital assets as a component of a diversified, long-term investment strategy is evident in bitcoin’s recent performance, increased stablecoin adoption, and record ETF inflows.
With over 500 million users in 2025, worldwide cryptocurrency adoption is booming, with projections that number will exceed 600 million by year-end. This growth is mirrored in the institutional sphere, as evidenced by US Bitcoin ETFs attracting over $17 billion in inflows this quarter, indicating a rising demand for portfolio exposure among institutional investors.
Quinn-Kumar said he views America’s proactive approach to regulating stablecoins and digital assets as a step towards greater clarity and protection within the industry.
“This regulatory willingness contributes to a solid foundation for sustained progress and ongoing confidence as the industry enters its next phase of growth,” he said.
Closer to home, head of SMSF strategy at Coinstash, Simon Ho, said what’s happening in the states is just the beginning.
“We expect this to trigger a ripple effect, placing pressure on superannuation funds here in Australia, across industry, retail, and government, to offer crypto options to stay competitive,” he said.
He said the exchange platform has already seen strong momentum from self-managed super fund (SMSF) trustees proactively investing in crypto – while their accountants, advisers and auditors scramble to keep up.
Should the US successfully integrate digital assets into its legal and financial frameworks, Green said other global regions, including Europe and Asia, would face pressure to expedite the development of their own regulatory structures or risk falling behind.
Green said actions of the US send a clear message to markets and other governments: “adapt or fall behind”.
