Bitcoin and Ethereum surged on Thursday after President Donald Trump signed a sweeping executive order that could reshape the $12.5 trillion U.S. retirement market.
The move paves the way for 401(k) plans to include private equity, real estate, cryptocurrencies, and other alternative investments, a change long sought by the financial industry.
Bitcoin climbed 1.93% in the past 24 hours to $117,456, lifting its market cap to $2.33 trillion, while Ethereum jumped 5% to $3,863, with its market value now at $466 billion. Analysts say the gains reflect growing optimism that a fresh wave of institutional money could enter the digital asset space.
Under the new directive, the Labor Department has six months to reconsider its stance on alternative asset options for retirement plans governed by ERISA. The order also calls for clearer rules on fiduciary responsibilities when offering funds that hold such assets. Trump instructed Labor Secretary Lori Chavez-DeRemer to coordinate with the Treasury Department, SEC, and other regulators to assess further rule changes aimed at expanding access.
Industry players see this as the largest step yet toward integrating private markets into defined-contribution plans. While previous attempts were rolled back under the Biden administration, this initiative revives and expands those efforts, potentially opening retirement portfolios to assets traditionally limited to institutional investors.
The announcement comes as Trump continues to position the United States as a global leader in digital assets. Recent moves include hosting a “Crypto Week” at the White House, signing the first federal stablecoin legislation, and creating the role of a White House AI and crypto czar. His administration has also eased regulatory pressure on major crypto firms and launched plans for a Strategic Bitcoin Reserve.
Proponents argue that adding private equity and crypto to 401(k)s could diversify savings and enhance returns, though critics warn of higher fees, increased risks, and potential legal challenges. For the crypto market, however, the potential influx of retirement capital could mark the beginning of a new growth phase.
Source: Bloomberg
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Reporter at Coindoo
Source: https://coindoo.com/trump-officially-signs-401k-crypto-access-order-as-bitcoin-surges-past-117k/