Bitcoin (COIN:BTCUSD) extended its upward momentum on Friday, boosted by a new executive order from U.S. President Donald Trump aimed at expanding the use of alternative assets — including cryptocurrencies — within 401(k) retirement accounts.

Alternative cryptocurrencies saw even stronger advances, with Ether approaching its 2021 highs and XRP surging following the resolution of the prolonged legal dispute between Ripple, the token’s issuer, and the U.S. Securities and Exchange Commission.

Despite these gains, markets remained cautious amid declining global risk appetite after Trump’s tariffs on several major economies took effect. Bitcoin also traded below its intraday peak during the session.

By 01:47 ET (05:47 GMT), Bitcoin had risen 1.7% to $116,570.2.

Trump’s order fuels crypto rally by opening retirement funds to alternative assets

The presidential directive paves the way for alternative asset managers to capture a larger share of America’s vast retirement savings market. It also simplifies access for investors seeking to include alternative assets in their defined contribution plans.

Trump argued that “regulatory overreach and litigation risks” have previously blocked retirees from potentially higher returns through alternative investments. However, some critics caution that these assets carry inherently higher risk, making them less suitable for long-term retirement stability.

This move aligns with Trump’s pro-crypto agenda, which saw the passage of several crypto-friendly regulatory measures earlier this year.

The announcement helped Bitcoin break out of the $110,000 to $115,000 range it had been stuck in since late July.

Still, major upside remained limited, especially with spot Bitcoin ETFs seeing four consecutive days of capital outflows. Profit-taking following Bitcoin’s record highs in July, alongside concerns about Trump’s tariffs, contributed to a cautious market stance.

Crypto prices: Ether nears $4K, XRP jumps after SEC settlement

Other cryptocurrencies outperformed Bitcoin on Friday, largely recouping last week’s steep declines.

Ether, the world’s second-largest crypto, surged 5.6% to $3,902.01, inching close to its 2021 peak above $4,000.

The rally was fueled by a growing number of firms adding Ether to their corporate treasuries, following a trend set by Bitcoin and MicroStrategy. This strategy proved highly successful for Michael Saylor’s company, which enjoyed strong stock gains over the past year.

XRP rose 10.5% to $3.3149, reaching its highest level in nearly three weeks.

The boost came as Ripple and the SEC agreed to end their long-standing legal battle. The resolution was widely anticipated after Trump appointed more crypto-friendly officials to the SEC and shifted crypto oversight to the Commodity Futures Trading Commission.

Other notable moves included Solana’s 3% gain and Cardano’s 7.1% rise.

Among meme coins, Dogecoin increased 7.1%, while $TRUMP climbed 3.1%.

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