Bitcoin, XRP, Ether Jump. How Trump and the SEC Are Giving Cryptos a Big Boost.

Bitcoin is now trading about 5% off the record high it hit in mid-July. (Michael M. Santiago/Getty Images)

Bitcoin and other cryptocurrencies were rallying on Friday after an executive order from President Donald Trump gave the digital-asset sector a boost.

The world’s largest token was up 1.4% to $116,605 over the past 24 hours, according to CoinDesk data. It’s now trading about 5% off the record high it hit in mid-July.

Trump on Thursday signed an executive order opening up Americans’ 401(k) plans to private-equity funds, cryptocurrencies, and other alternative investments. The move unlocks a massive investment opportunity for the asset classes: 401(k)s held $8.9 trillion in assets as of September last year, according to the Investment Company Institute.

Another regulatory development could also be boosting digital-asset prices. The Securities and Exchange Commission said Thursday that it was dropping its long-running case against blockchain company Ripple Labs, drawing a line on a legal battle that has dragged on for years. XRP, the token used to settle and facilitate transactions on Ripple’s digital-payments platform, jumped 11% over the past 24 hours, per data from the crypto exchange Kraken.

Other altcoins were also rising. Ethereum was up 4.8% and Solana was up 3.4% over the past 24 hours.

Write to George Glover at george.glover@dowjones.com