This move aims to unlock the $9 trillion 401k market for a wider variety of alternative assets, aligning with Trump's pro-cryptocurrency agenda and building broader wealth.
According to sources cited by the Financial Times, this order could be issued this week. The order will direct federal agencies to remove the legal barriers currently preventing pension fund managers from including digital assets and private investments in managed portfolios.
This decision would mark a significant shift from the current state, where most 401k options are limited to mutual funds and traditional securities. If implemented, major investment firms like BlackRock, Apollo, and Blackstone would benefit from high demand for diversified retirement products.
The White House stated that Trump is committed to giving American workers more control over how they grow their savings. Officials also hinted that the administration is looking to exempt small cryptocurrency transactions from capital gains tax—an additional incentive to boost adoption.
Trump's cryptocurrency-friendly stance has shaped policy, including the repeal of Biden's limits on digital assets in retirement plans. His administration has also supported legislation favorable to the cryptocurrency industry and relaxed regulatory measures.
Notably, Trump has acknowledged the contribution of the cryptocurrency community for helping secure his victory in the 2024 election. His media company has invested billions of dollars into digital assets and launched its own stablecoin, signaling the administration's intent to integrate cryptocurrency more deeply into the U.S. financial system.
