Crypto News August 8, 2025: 401(k) Opens to Crypto, Ethereum Breaks $4K & China Halts Stablecoin Hype

Trump Opens 401(k) Plans to Cryptocurrency and Alternatives

In a notable shift on August 7, 2025, President Trump signed an executive order directing the Department of Labor to reevaluate rules under ERISA. The goal: allow 401(k) retirement plans—covering over 90 million Americans with nearly $9 trillion in assets—to include alternative investments like cryptocurrencies, private equity, and real estate.

Fidelity, Vanguard, and other providers will likely face a lengthy adoption process. Critics caution about volatility, illiquidity, and inflated fees, especially for retirees.

Ethereum Soars Above $4,000 on Growing Institutional Demand

Today, Ethereum (ETH) briefly topped $4,000—its highest level since December 2024—on surging institutional investment, ETF inflows, and mounting demand from corporate treasuries. The rally was supported by the Digital Asset Market Clarity Act’s regulatory guidance and robust staking yields reducing ETH supply.

China Orders Brokers to Halt Stablecoin Promotion

Chinese regulators have instructed brokerages and research institutes to immediately stop promoting stablecoins via seminars, research publications, or marketing materials. This move responds to overheated speculative interest and concerns of misuse despite mainland crypto trading remaining banned. The crackdown aims to cool market frenzy and prevent financial risks, especially after Hong Kong’s stablecoin legislation stimulated investor inquiries.