US President Donald Trump plans to sign an order permitting citizens to include alternative assets like cryptocurrencies in their 401(k) plans. This could significantly alter access to investments for Americans.
Pending Order and Its Implications
According to a Bloomberg report, Trump is set to approve an executive order that will allow Americans to diversify their 401(k) retirement plans by including alternative assets such as cryptocurrencies, real estate, and private equity.
The order is expected to be signed on Thursday. The U.S. Department of Labor will reassess the rules set by the Employee Retirement Income Security Act of 1974 (ERISA), specifically focusing on the inclusion of alternative assets in retirement portfolios.
Trump's Strategy on Digital Assets
This executive action is the latest in a series of crypto-forward moves by the Trump administration. Earlier this year, Trump issued an order to establish a Strategic Bitcoin Reserve and a broader stockpile of digital assets to secure America’s dominance in the digital economy.
Additionally, a 166-page crypto report was released, drafted by the Digital Asset Working Group, outlining a bold plan for the nation’s role in the digital asset economy.
Impact on American Retirement Savings
Allowing private market products in 401(k) accounts could open up about $12.5 trillion in retirement investments to options that were previously available only to certain accredited investors.
Supporters believe that including options like cryptocurrency and private equity could give savers more flexibility and the chance for higher returns.
Trump's forthcoming executive order on expanding access to alternative assets in 401(k) plans could significantly change how Americans approach retirement savings and investing in cryptocurrencies.
