Trump's plan to expand retirement funds for cryptocurrency investment could boost the market, affirming his strategy to support cryptocurrency.
Allowing the use of cryptocurrency in 401(k) retirement funds in the United States will diversify investment options, drive significant capital inflow into the cryptocurrency market, and create an important turning point for the financial industry.
MAIN CONTENT
Trump intends to expand 401(k) retirement funds for cryptocurrency investment and other alternative assets.
This move aims to facilitate an estimated $90 billion inflow into the cryptocurrency market.
This aligns with the Trump administration's strategy to support cryptocurrency, accompanied by previous regulatory relaxations.
What does Donald Trump want to do with retirement funds related to cryptocurrency?
According to the Financial Times report, President Trump is expected to sign an executive order opening 401(k) retirement funds for investment in alternative assets, including cryptocurrency and gold.
This is a new step aimed at removing existing legal barriers, allowing fund managers to integrate more diverse investment options in the retirement fund, rather than just focusing on traditional stocks and index funds.
How is Trump's cryptocurrency support strategy reflected in recent policies?
The Trump administration has cut back on strict SEC controls over major cryptocurrency platforms, while the Fed has also loosened regulations for accessing traditional banking systems.
In fact, the U.S. housing agency has confirmed that Bitcoin and other cryptocurrency assets can be considered in mortgage applications, with a bill for official recognition being proposed in Congress.
"We are rolling back excessive intervention and affirming that investment decisions should belong to fund managers, not administrative officials in Washington D.C."
– U.S. Department of Labor, 2025
How might opening retirement funds to cryptocurrency impact the market?
Omar Kanji, investment partner at Dragonfly Capital, evaluates this as a "big door" opening for the cryptocurrency market, with a potential capital inflow of up to $90 billion if it only accounts for 1% of the total $9 trillion in 401(k).
As a result, the pension fund, which is a source of stable capital, will create reliability and boost liquidity for the cryptocurrency market, contributing to reinforcing positive trends in the long term.
"Assets in U.S. retirement funds currently total $43 trillion, with $9 trillion in 401(k). If 1% is allocated to cryptocurrency, the market will receive an additional approximately $90 billion."
– Omar Kanji, Partner at Dragonfly Capital, 2025
Are there risks associated with introducing cryptocurrency into retirement funds?
Despite the positive outlook, cryptocurrencies still have high volatility, which many experts see as a risk factor for long-term investments in retirement funds.
Workers and managers will need to carefully weigh the potential for returns against risks when deciding to allocate capital to this asset.
What other alternative asset types could be considered in retirement funds?
In addition to cryptocurrency and gold, other assets such as infrastructure bonds and private equity are also being considered to diversify the investment portfolio for 401(k) retirement funds.
This provides participants with more choices, depending on their risk tolerance and personal investment strategy.
Frequently Asked Questions
1. Has Trump actually signed an order to open 401(k) funds to cryptocurrency yet?
As of mid-2025, this is still a plan under consideration, and no official executive order has been signed.
2. Is introducing cryptocurrency into retirement funds safe?
Given the volatility of cryptocurrencies, careful consideration of risks is necessary before allocating to long-term retirement funds.
3. What is the current main investment focus of 401(k) funds?
4. What alternative asset types could appear in the 401(k) fund?
Cryptocurrency, gold, infrastructure bonds, and private equity are proposed additional assets.
5. How will this affect the Vietnamese cryptocurrency market?
The strategy to open up the U.S. market could create a positive spillover effect, boosting liquidity and global investor confidence, including in Vietnam.
Source: https://tintucbitcoin.com/crypto-trump-day-manh-huu-tri-my/
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