 
 
US President Donald Trump has signed a new executive order into effect that will allow American 401(ks) to invest in digital assets and related financial instruments. This could be a massive move for the entire digital currency market, as 401(k)s, also known as retirement funds, collectively hold a massive $6.12 trillion in assets and could invest significantly in them.
However, the new presidential proclamation isn’t crypto-specific but a massive overhaul of retirement plan options available to American residents. It includes private equity, real estate, and other alternative investments as well. The move has opened the way for asset managers to tap into trillions of dollars worth of potential investments.
The Executive Order
According to the wording of the executive order:
“My Administration will relieve the regulatory burdens and litigation risk that impede American workers’ retirement accounts from achieving the competitive returns and asset diversification necessary to secure a dignified, comfortable retirement”.
The document then tasks the Labor Secretary and the Securities and Exchange Commission (SEC) to implement this directive and make it easier for Americans to invest in these disruptive assets. It also asked federal agencies to ensure clarity in the current rules to facilitate the ownership of these assets, but stopped short of asking for specific actions in this regard.
 
Executive orders are one of the primary tools at the disposal of the President’s office in the USA. However, they can be challenged in courts, and the latter have a long precedent of delaying and even striking down orders that don’t line up with the constitution or established precedents.
The US pensions market is set to reach a whopping $10 trillion by 2030 with an annual CGR of 9%.
How it Impacts the Larger Crypto Market
The Trump executive order is a major deal for crypto investors in the USA, as previously, federal agencies and executive authority had heavily discouraged crypto in retirement accounts. The move was particularly welcomed by elite asset managers like BlackRock, which was reportedly behind the lobbying of this particular use of presidential power by President Trump.
Users on X (formerly Twitter) also chipped in immediately, with one analyst commenting:
According to Blackrock’s senior retirement asset manager, Jaime Magyera:
“Expanding access to investments long out of reach will help ensure millions of Americans build stronger, more diversified portfolios designed to increase savings and address the practical considerations of DC plan fiduciaries,”
The move follows years of lobbying by crypto users and asset managers to improve the process of including crypto in 401(ks). It remains to be seen just how much of a major impact it will have on Bitcoin’s price index, which is currently trading around the $117,000 valuation.
Source: https://zycrypto.com/trump-signs-executive-order-to-allow-crypto-into-401k/