The U.S. 401(k) retirement plan, which emphasizes 'stable retirement,' is approaching a turning point that could rewrite the asset allocation landscape. According to a report today (18th) by the Financial Times, citing informed sources, President Trump is expected to sign an executive order to relax investment restrictions on 401(k) plans, allowing cryptocurrencies like Bitcoin, gold, and private equity to gain formal access to the $9 trillion retirement market.
Could Trump sign an executive order?
However, the White House has not yet released the complete text, and spokesperson Kush Desai also told Cointelegraph:
'Unless it's issued by President Trump himself, no decision should be considered official. However, President Trump is committed to restoring prosperity for the American people and securing their economic future.'
Despite the cautious tone, the outside world generally interprets it as a prelude to policy formulation. If the order officially takes effect, the 'qualified investment list' for 401(k) plans will no longer be limited to stocks, bonds, and mutual funds, and cryptocurrencies will leap to become an optional item.
The market has already positioned itself in advance
In fact, the shift in the U.S. government's regulatory stance was not without warning. In May of this year, the U.S. Department of Labor rescinded guidelines that restricted the inclusion of cryptocurrencies in 401(k) plans during the Biden administration.
As early as April, Fidelity, with an asset management scale of $5.9 trillion, launched retirement accounts that allow holders to invest in cryptocurrencies. Industry observers point out that the early adoption of institutional products indicates that the market had anticipated policy loosening and reflects that crypto assets now offer considerable appeal for client diversification in the eyes of asset management companies.
Potential returns and structural risks
For investors, in a low-interest-rate environment, Bitcoin has outperformed the Nasdaq index in five of the past six years, attracting pension funds seeking to enhance long-term returns.
However, the crypto market is simultaneously experiencing significant volatility. Critics warn that shifting retirement savings to higher-risk, lower-liquidity alternative assets (such as private equity and cryptocurrencies) could expose retail investors to greater financial risks.
Next focal point of observation
If Trump's executive order is officially released, the U.S. financial system will see a 'top-down' legal endorsement, and cryptocurrencies are expected to become potential allocation options for tens of millions of retirement accounts. For regulators, finding a balance between openness and protection will determine whether reforms can truly benefit long-term investors.
For 401(k) holders, facing an additional high-volatility asset, the allocation ratio, fee structure, and long-term risk tolerance must all be recalculated.
However, it can be anticipated that the cryptocurrency market should be able to attract more new funds from this.
