According to the Financial Times, U.S. President Donald Trump plans to sign an executive order as early as this week, allowing U.S. 401(k) retirement plans to invest in "alternative assets" such as cryptocurrencies, gold, and private equity. Once implemented, this move will open the doors of the currently $8.9 trillion 401(k) retirement market to crypto assets, potentially bringing structural benefits to the entire cryptocurrency industry.
401(k) is the primary retirement savings tool provided by U.S. employers, currently covering more than 71.5 million Americans. The system allows employees to invest pre-tax income into retirement accounts for long-term investment. This potential policy change means that employees might legally allocate part of their retirement funds to digital assets such as Bitcoin in the future.
The executive order will require regulatory agencies to develop implementation plans and assess whether existing regulations hinder the inclusion of cryptocurrencies and other alternative assets in retirement portfolios. President Trump will have the final decision on the policy direction. White House spokesperson Kush Desai emphasized that the decision has not been finalized before the president officially signs it.
This move also means that the regulatory path that limited crypto assets in retirement accounts during the Biden administration may be completely reversed. Previously, under the Biden administration, the U.S. Department of Labor set significant barriers to investing in cryptocurrencies through 401(k) plans and issued guidance documents restricting employers from recommending such products.
Although Trump's executive order has not yet been officially released, the market has already reacted. As early as May this year, American financial giant Fidelity launched a new product that includes crypto assets in retirement accounts, showing that the private market has clear expectations for this direction.
If 401(k) retirement funds truly open up investment in crypto assets, a portion of this vast market's funds may enter mainstream tokens such as Bitcoin and Ethereum, potentially injecting significant liquidity into the digital asset market and enhancing its mainstream status in the U.S. financial system.
