On August 7, 2025, U.S. President Donald Trump signed an order that opens access to cryptocurrencies in 401(k) plans, which could significantly change investment options for citizens.
Trump's Executive Order Spurs Crypto Integration in 401(k)s
President Trump initiated changes to the rules governing access to alternative assets in retirement plans, including cryptocurrencies. The order involves collaboration with the Department of Labor and SEC, rescinding past restrictions and allowing for flexible regulation.
> "The directive will instruct the U.S. Department of Labor to reevaluate existing limitations on alternative assets in defined-contribution retirement plans." - *U.S. President Donald Trump*
$12.5 Trillion Held in 401(k)s Poised for Crypto Diversification
U.S. 401(k) plans, holding over $12.5 trillion, may soon provide access to cryptocurrencies, which would help diversify retirement portfolios. Institutional involvement is expected, with platforms like Fidelity and Vanguard potentially adopting crypto offerings. While past initiatives faced caution, significant interest in large-cap cryptocurrencies like BTC and ETH is anticipated.
401(k) Shift Mirrors Private Equity, Real Estate Trends
Current changes in 401(k) plans reflect broader trends of including private equity and real estate, and experts note that successful integration of cryptocurrencies will depend on institutional readiness and regulatory compliance. Effective product design and risk management will also be key factors for achieving goals.
The signing of Trump's order opens new horizons for the integration of cryptocurrencies into the U.S. retirement system, which may play a significant role in the future of asset management.
