Just last week, Trump quietly did something~
This is about the repeal of the ban on 401(k) pension funds purchasing cryptocurrencies that was in place during the Biden administration.
The official statement is that the U.S. Department of Labor announced the withdrawal of the prudential guidelines issued in 2022 regarding the investment of cryptocurrency in 401(k) retirement accounts, shifting to a neutral stance.
The reason is that investment decisions should be made by trustees rather than bureaucratic agencies.
A 401(k) is a retirement savings plan named after Section 401(k) of the U.S. Internal Revenue Code, allowing employees to set aside a portion of their wages into an account to invest in stocks, bonds, funds, and other assets, deferring taxes until withdrawal at retirement.
In layman's terms, it's the American version of 'individual pension plans'; this scheme was gradually implemented in the 1980s and has played a significant role in the 'long bull market' of U.S. stocks.
Currently, the total asset size of the U.S. stock market reaches $50 trillion, but $8 trillion is sitting in 401(k) accounts.
This portion of funds is equivalent to long-term staking because they will only enjoy tax-exempt status when withdrawn after retirement, and there is also a net buying pressure of over $300 billion in U.S. stocks generated each year!
If a portion of these funds could be allocated to Bitcoin, it would practically take off on the spot!
Strictly speaking, the Biden administration's guidance in 2022 (issued by the Department of Labor) was not a ban, but rather a reference opinion.
The opinion warns employers against including cryptocurrency in 401(k) plans due to its high volatility, fraud risks, and lack of regulation.
Many employers are afraid of the hassle; by 2025, less than 1% of 401(k) plans will offer cryptocurrency options.
After Trump rescinded this reference opinion, more and more employers are expected to choose to include Bitcoin in their employees' 401(k) plans.
According to estimates, currently, less than 5% of 401(k) plans offer gold ETFs as an investment option, while about 80% of the funds still choose U.S. stocks.
So, Americans still have a deep faith in stocks~
However, the narrative of saving for retirement with one Bitcoin should resonate with many people; if Bitcoin can truly become popular in 401(k) accounts, surpassing gold in market value is just around the corner~