Donald Trump is preparing a new executive order that would open the $9 trillion U.S. retirement savings market to alternative assets, including cryptocurrency.
New Trump Order for Retirement Plans
According to a July 17 Financial Times report, the order will instruct federal agencies to examine and remove regulatory barriers that prevent the incorporation of digital assets and other alternative investments into 401(k) plans. This move significantly impacts the adoption of cryptocurrencies within the American financial system.
Potential Market Impacts
If enacted, this policy would allow professionally managed retirement plans to include a broader range of asset classes beyond public stocks and bonds. It would create opportunities for everyday savers to allocate capital to Bitcoin, private loans, and infrastructure investments. The order aims to provide legal safe harbors for retirement plan administrators which will lower liability risks associated with these more risky investments.
Opinions and Criticism of New Initiatives
Some experts caution that adding illiquid and expensive investments to retirement plans may pose increased risks for unsophisticated investors. However, supporters argue that the shift would provide diversification and inflation protection, while increasing access to the growth potential of emerging sectors like blockchain and digital finance.
Trump’s order, if implemented, could drastically alter the retirement landscape in the U.S. and further establish cryptocurrency's role in the nation's long-term economic strategy.
