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President Trump signed an executive order to enable 401(k) investors to diversify into private assets, including private equity, venture capital, hedge funds, real estate, and possibly gold and crypto. This directive tasks the Department of Labor and SEC with creating guidelines for incorporating these investments into defined-contribution plans. Proponents argue that private assets offer diversification and higher returns compared to traditional stocks and bonds, with BlackRock's Larry Fink suggesting a future portfolio mix of 50/30/20 (stocks, bonds, private assets). However, experts like Lisa A.K. Kirchenbauer caution against the risks, including low liquidity and complexity, advising investors to limit exposure to 5-10% and fully understand the investments. Major firms like BlackRock, Empower, and Voya are already developing products with private assets, aiming for enhanced returns, but concerns persist about higher fees, lack of transparency, and suitability for average investors. Critics highlight that private assets, often reserved for sophisticated investors, may conflict with the flexibility needed by 401(k) participants and could increase costs, despite recent reductions in plan fees due to index funds. The move aims to democratize access to alternative investments but raises questions about whether regular savers are equipped to navigate these complex options.
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North Carolina Senator Thom Tillis has issued a stark warning that Congress must act by early 2025 to pass critical cryptocurrency legislation, or risk it being derailed by political gridlock and the 2026 midterm elections. Speaking to Bloomberg, Tillis highlighted the urgency as the government shutdown, ongoing since October 1, and disputes over funding have stalled progress on key bills like the CLARITY Act, which seeks to clarify regulatory oversight of digital assets between the CFTC and SEC. Despite bipartisan support—evidenced by the House passing the CLARITY Act and the earlier GENIUS Act becoming law—Senate discussions have faltered due to a leaked DeFi proposal and the shutdown. Recent closed-door meetings with industry leaders show renewed bipartisan efforts, with Coinbase CEO Brian Armstrong noting 90% of issues resolved and a potential Thanksgiving deadline. However, skepticism persists, with Polymarket data indicating only a 20% chance of passage by 2025. As other nations advance their digital asset frameworks, the U.S. risks falling behind if it cannot overcome political paralysis. Tillis emphasized that failure to act by February could render the current push for crypto reform effectively “dead,” underscoring the fragile momentum in Washington.
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The Morning Minute newsletter by Tyler Warner highlights significant developments in the crypto market, with a focus on the launch of the first U.S. spot Solana ETFs, including the Bitwise Spot Solana ETF (BSOL) and Grayscale Solana Trust, alongside Litecoin and Hedera ETFs. This marks Solana’s entry into the ETF space, following Bitcoin and Ethereum, with BSOL uniquely offering staking to compound yields. Trading near $200, Solana’s momentum as a top-5 crypto by market cap is bolstered by this move, enhancing liquidity and access for institutional and retirement accounts. However, the absence of BlackRock, a dominant player in BTC and ETH ETFs, suggests tempered expectations for inflows. Other news includes slight declines in major cryptos like BTC (-1% at $114,500) and ETH (-1% at $4,120), a $500M raise by MegaETH in its ICO, and political moves to ban crypto trading for U.S. elected officials. Additionally, Ethereum treasury stock ETHZ surged 14% after a $40M ETH sale, while NFT and memecoin markets showed mixed results. France’s potential Bitcoin Strategic Reserve and Mt. Gox’s delayed repayments also made headlines, reflecting the dynamic and evolving crypto landscape.
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Tesla Chair Robyn Denholm has issued a urgent plea to shareholders to approve CEO Elon Musk’s unprecedented compensation package, potentially worth $1 trillion, warning that his departure could jeopardize Tesla’s future. In a letter to shareholders, Denholm emphasized Musk’s indispensable role in driving Tesla’s success across automotive, robotics, and autonomous driving sectors, arguing that without an equitable pay-for-performance plan, Tesla risks losing his leadership and significant value. The package, linked to ambitious targets like a $8.5 trillion market cap, faces opposition from proxy advisers Glass Lewis and ISS, who deem it excessive. Musk, embroiled in a legal battle over his 2018 pay package, has criticized these advisers harshly. Despite concerns over Musk’s political engagements harming Tesla’s brand, analysts like Dan Ives predict shareholder approval at the November 5 meeting, viewing it as crucial during a critical phase for Tesla. Denholm insists Musk alone can lead Tesla to new heights in growth and societal impact.
