Trump Order Opens 401(k) Plans to Bitcoin and Other Crypto

The White House on Thursday issued an executive order authorizing U.S. 401(k) retirement plans to offer investments in cryptocurrencies alongside other alternative assets, including private equity and real estate. The directive instructs regulators to craft guidance that will let plan sponsors add digital-asset options, reversing restrictions that had limited most defined-contribution plans to stocks, bonds and mutual funds.

The policy affects roughly $9 trillion held in 401(k) accounts. Bitwise Asset Management said a 10% allocation to Bitcoin alone could translate into about $800 billion of fresh demand for the cryptocurrency, a figure that would eclipse the inflows generated by this year’s spot Bitcoin exchange-traded funds.

Crypto fund managers quickly welcomed the move. Grayscale Chief Executive Peter Mintzberg said the change could broaden access to new asset classes and reshape how Americans build long-term wealth. Market strategists expect an initial wave of portfolio rebalancing once the Labor Department finalizes implementation rules, followed by steady contributions as workers direct a portion of their retirement savings into digital assets.

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