Trump to Sign Order Allowing 401(k) Crypto Investments

U.S. President Donald Trump is set to sign an executive order on August 7, 2025, allowing 401(k) funds to invest in alternative assets like cryptocurrencies, totaling $12.5 trillion.

This policy could transform the retirement investment landscape by providing access to alternative assets, potentially enhancing diversification and returns amid debates over associated risks and regulatory oversight.

Trump’s Executive Order Targets Diversification Benefits

President Donald Trump will sign an executive order allowing 401(k) retirement funds to invest in alternative assets such as private equity, real estate, and cryptocurrencies. This directive seeks to integrate these options into retirement plans, driven by potential benefits in diversification and returns.

The Department of Labor will reevaluate guidelines for including these assets in retirement accounts. Trump has directed the Labor Secretary to coordinate with the SEC and Treasury, potentially modifying existing rules. Investors anticipate these changes will reshape retirement portfolios. According to Kelsey Mayo, Regulatory Affairs Chief, American Retirement Association, “The EO will likely encourage broader access to private markets and digital assets in some way.”

Market responses have been primarily positive, with institutional investors viewing the proposal as an opportunity for growth. However, analogous concerns about higher fees and risks associated with these assets exist. Industry experts are closely monitoring regulatory directives to understand their full implications.

Bitcoin’s $2.31 Trillion Market Cap at Stake

Did you know? In 2020, a similar move to include private equity under Trump was reversed by Biden, highlighting the volatility in policy regarding alternative assets in retirement plans.

According to CoinMarketCap, Bitcoin, symbolized as BTC, holds a market cap of roughly $2.31 trillion with a dominance of 60.62%. As of today, BTC is valued at $116,051.96, reflecting a 1.78% increase in the past 24 hours. It experienced moderate fluctuations over the last 90 days, marking a 12.57% rise.

Research insights suggest potential regulatory changes could increase crypto’s institutional acceptance within U.S. retirement vehicles. Expert analysis indicates private asset openness might heighten digital asset integration. However, existing fiduciary obligations and fee concerns will require careful assessment of investor protections.