Shares in Robinhood stock (HOOD) are trading higher on Thursday following the latest pro-crypto executive order signed by US President Donald Trump. Trump today approved a new bill that permits 401 (k) savings plans to include cryptocurrencies and digital assets. Major cryptocurrencies and crypto-related stocks were rallying early before the announcement, including Bitcoin and other top coins.

Robinhood (HOOD), Coinbase (COIN), Strategy (MSTR), and other crypto-focused stocks ended Thursday trading higher.

More About the New 401 (k) Crypto Bill

The newest Trump executive order will direct the Securities and Exchange Commission (SEC) to facilitate the use of alternative assets in 401(k) plans and other retirement accounts, including crypto. Traditionally, most 401(k) participants are offered a mix of stock or bond funds or index products in which to invest. However, with the explosion of the digital assets industry over the last few years, many investors are looking to expand their portfolios with crypto.

The US Labor Department is tasked with clarifying the Federal government’s position on allowing private allocation of funds via crypto in the 401(k) retirement plan. It also includes alternative holdings that are going to be a part of the executive order. The development comes after Trump hosted the ‘Crypto Week’ at the White House in early August.

Also Read: Trump to Sign Executive Order to End “Debanking” in US Banks

“Private assets like real estate and infrastructure can lift returns and protect investors during market downturns,” BlackRock chairman Larry Fink wrote in his latest annual investor letter. “We need to make it clear: Private assets are legal in retirement accounts. They’re beneficial. And they’re becoming increasingly transparent.” BlackRock has seen immense success in the past year with its spot crypto ETF offerings, and has pending applications for additional crypto ETFs.

US President Trump has signed numerous pro-crypto bills since his return to the White House. Most recently signed the first-ever Federal law to regulate stablecoins, which was passed in the Genesis Act. All stablecoins are pegged to the US dollar in a 1:1 ratio, ushering the digital assets market into a new financial era. Furthermore, Trump will also direct Labor Secretary Lori Chavez-DeReme to facilitate the access of crypto in the 401(k) retirement plan.