Bloomberg reports that former U.S. President Donald Trump plans to sign an executive order allowing 401(k) retirement plans to invest in alternative assets such as cryptocurrencies, real estate, and private equity. The order will direct the Department of Labor to revise guidance related to the Employee Retirement Income Security Act (ERISA), collaborating with the U.S. Securities and Exchange Commission (SEC) and the Treasury Department to adjust rules and open up these new investment channels.
This measure could unlock investment opportunities in Bitcoin spot ETFs for 401(k) investors. According to data from Farside Investors, since the launch of the spot BTC ETF in January last year, institutional investors have cumulatively flowed more than $53.7 billion into it. Despite this, regulatory uncertainty, market volatility, and custody risks still limit the participation of ordinary savers.
Currently, there are about 71.5 million 401(k) account holders in the U.S., with a market size of $8.9 trillion. This move is seen as a key step in pushing cryptocurrencies into the mainstream, expected to bring billions of dollars into the digital asset market, but the initiators of the plan need to carefully assess the related risks.
Following the Department of Labor's revocation of the Biden administration's guidance on 401(k) investment restrictions, Trump's executive order could mark new progress in his support for cryptocurrency policies. Since January this year, the Trump administration has signed the GENIUS Act, establishing a regulatory framework for stablecoins; the SEC has issued "crypto project" relaxed licensing requirements; and the Commodity Futures Trading Commission (CFTC) has launched the "Cryptocurrency Sprint" initiative, exploring spot cryptocurrency futures trading.
