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Trump’s executive order opens the door for crypto investments in U.S. 401(k) plans, expanding digital asset exposure.
Euphoria raises $7.5 million to simplify crypto derivatives trading with a user-friendly mobile interface.
Paxos settles for $48.5 million over regulatory lapses in its Binance partnership, highlighting increased scrutiny on crypto firms.
Regulatory implications have been hanging over the cryptocurrency market, which may determine its future. With the adoption of digital assets into retirement accounts and subsequent rounds of funding for new platforms, the environment is changing swiftly. U.S. President Donald Trump declared last month his intention to introduce cryptocurrencies to 401(k) plans, while Euphoria, a crypto derivatives trade app, raised substantial capital investments.
Meanwhile, Paxos has agreed with the New York regulator to settle its collaboration with Binance regarding increasing regulatory interest in the crypto sector. Here’s a closer look at these pivotal events shaping the crypto market.
President Donald Trump is set to sign an executive order that will allow U.S. workers to include cryptocurrencies in their 401(k) retirement plans. The White House Press Office confirmed the order, which seeks to open up investment opportunities in the country's $12.5 trillion retirement market. The increased attention informs the move on digital assets and marks a major phase of coin incorporation into the financial economy.
The executive order directs the U.S. Department of Labor to examine the existing regulations governing alternative investments in retirement plans. This involves an examination of adding cryptocurrencies, real estate, and private equity. With a reconsideration of fiduciary standards, the Labor Department will provide more explicit guidance to plan providers and enable crypto assets as a possible alternative for 401(k) investments. The transfer is a milestone in the cryptocurrency industry that has long sought broader exposure within retail investment markets.
Euphoria, a blockchain-based crypto derivatives trading platform on the MegaETH blockchain, has attracted a seed round of $7.5 million. More than 100 investors, such as prominent venture capital funds and angel investors, participated in the round. This fundraising aims to provide crypto options and perpetual trading to the average user by creating a user-friendly mobile interface.
The platform, which is scheduled to be launched later this year, will provide users with an easier trading experience. The interface used by Euphoria, known as "tap trading," will enable users to trade without having to learn any complex market structure or advanced trading instruments.
As crypto derivatives have become a significant trading volume constituent in the digital asset markets, Euphoria seeks to open up the space to average investors. The long-term goal of the company is to open up new user segments, similar to how Robinhood transformed options trading for retail investors.
Also Read: Bitcoin Price Hovers Around $114,700; What’s Next?
Crypto giant Paxos will pay a $48.5 million fine after settling with the New York Department of Financial Services (NYDFS). This settlement is based on the company's failure to maintain appropriate measures against money laundering (AML) during its association with Binance. The NYDFS stated that Paxos had failed to conduct due diligence on Binance, which enabled about $1.6 billion worth of illegal trades to flow through Binance USD (BUSD) as a stablecoin by Paxos.
As part of the settlement, Paxos will pay a $26.5 million penalty and spend an additional $22 million to overhaul its compliance systems. This penalty is in addition to a previous order issued in February 2023 that directed Paxos to cease the issuance of any Binance-related BUSD. This regulatory measure highlights the increasing attention given to cryptocurrency companies regarding their adherence to AML and Know Your Customer (KYC) policy. The settlement is a major step in the overall regulation of digital assets, underlining the necessity of improved transparency and accountability within the crypto market.
