- Trump’s order allows cryptocurrencies in retirement plans.
- Reverses previous restrictions on crypto investments.
- Potential increase in Bitcoin and Ethereum investments.
President Trump signed an executive order on August 7, 2025, allowing cryptocurrencies in 401(k) retirement plans, signaling a major policy shift in the U.S.
This order potentially reshapes retirement investment dynamics, increasing interest and demand for Bitcoin and Ethereum, as regulatory guidance awaits full implementation.
President Donald J. Trump signed an executive order directing the inclusion of cryptocurrencies in 401(k) retirement plans. This steps back from prior restrictions, allowing potential investments in assets like Bitcoin (BTC) and Ethereum (ETH) pending regulatory guidance. According to Trump, “[this order will] allow 401(k) investors to access alternative assets for better returns and diversification” (source).
The order involves the Department of Labor, SEC, and IRS, tasked with revising existing policies. The aim is to expand available investment choices for American workers, reflecting a shift in federal policy concerning alternative assets.
The action could significantly affect retirement plan providers, asset managers, and fintech platforms. While no immediate fund allocation occurs, the directive sets a framework for future offerings and broader investment diversity within retirement plans.
Financial implications include anticipated rises in investments for major cryptocurrencies like BTC and ETH. This may also encourage regulatory reviews of other assets and lead to new retirement products prioritizing alternative investments. More information can be found in the DOL Press Release on Recent Retirement Initiatives.
Potential outcomes involve increased acceptance and broader market participation in crypto. The policy wave may shift traditional retirement structures by integrating digital assets, a move aligning with those advocating for diverse, profitable options.
Cory Klippsten, CEO of Swan Bitcoin, noted that “it was inevitable that bitcoin would make its way into American 401(k)’s. As fiduciaries realize bitcoin’s risk-adjusted upside over the long term, we’ll see growing allocations, especially from younger, tech-savvy workers who want hard money, not melting ice cubes.” His perspective aligns with those who foresee young, tech-savvy workers favoring hard asset options like Bitcoin (source).
