US President Donald Trump plans to sign an executive order that will open the possibility for 401(k) pension plans to invest in cryptocurrency, real estate, and private equity.
Opportunities for Crypto Investments
According to a Bloomberg report, the order will direct the Labor Department to clear a path for 401(k)s to invest in alternative assets. This includes investments in Bitcoin ETFs, which have been previously inaccessible to everyday investors.
Growth of the Crypto Market
Currently, over 71.5 million Americans have 401(k) pension plans, with the overall market standing at $8.9 trillion. Such a move could be a significant step towards mainstream crypto adoption, potentially channeling billions of dollars into the digital asset market.
Regulatory Initiatives in the US
If the order is signed, it would mark the latest pro-crypto move by the Trump administration. Earlier this year, he signed the GENIUS Act into law, establishing guidelines for stablecoin issuers in the US. The SEC has also announced its "Project Crypto" initiative aimed at easing licensing requirements for US crypto firms.
The executive order signed by Trump may unlock new investment opportunities in cryptocurrency through pension plans but requires regulators to carefully assess risks associated with volatility and asset custody.
