I. Background and Macro Significance of Policy Advancement

  • This executive order requires the (current) Department of Labor, Securities and Exchange Commission (SEC), and Treasury Department to re-examine restrictions on alternative assets under the Employee Retirement Income Security Act (ERISA) of 1974, promoting policy adjustments to include cryptocurrencies, private equity, real estate, etc.

  • If truly implemented, it could potentially open more investment channels in the 401(k) market covering approximately 90 million U.S. retirement accounts (approximately $12-12.5 trillion in scale).

II. Positive Impacts (Positive Effects)

  1. Asset Diversification: Investors can utilize high-growth assets such as cryptocurrencies to further enhance potential returns and long-term growth opportunities in their portfolios.

  2. Innovation Drive: Financial institutions and asset managers may launch structured products (such as funds containing digital assets) specifically for retirement plans, stimulating financial innovation and product diversification.

  3. Opening New Wealth Doors for Institutions: Private equity and cryptocurrency asset management firms will officially enter the massive retirement savings pool for the first time, with asset management companies like Blackstone, KKR, Apollo expected to benefit significantly.

III. Risks and Controversies

  1. Increased Volatility and Risk: Cryptocurrency prices are highly volatile, and alternative assets pose risks such as valuation difficulties and poor liquidity, which may expose retirement assets to greater loss risks.

  2. High Fees and Complex Structures: The private market has low transparency and high fees, and investors may bear the costs of high rates and complex mechanisms, making it difficult to exit in the long term.

  3. Fiduciary Duty Risk: While the government hopes to provide 'safe harbor' protection for plan managers, in reality, they still bear legal responsibilities, and potential losses for investors may trigger lawsuits.

  4. Public Opinion and Reputation Risks: Some in the private equity industry believe that cryptocurrencies could introduce political and public relations issues, fearing damage to their image.

  5. Cautious Implementation Process: Despite policy loosening, industry experts point out the need for careful expansion, expecting cryptocurrency investments to first appear through 'self-directed brokerage windows', with the overall popularization process likely to be slow.

IV. Strategies and Recommendations for Investors

  • Cautious Allocation Ratio: Depending on risk tolerance and goals, consider keeping the proportion of high-risk assets such as cryptocurrencies within a lower range (e.g., 1-2%).

  • Prioritize Educational Resources and Compliant Products: Encourage plan providers to promote investment education and develop cryptocurrency investment products that meet compliance requirements.

  • Pay Attention to Compliance and Regulatory Developments: Closely monitor specific rules and 'safe harbor' provisions released by the Department of Labor, SEC, and other agencies, and participate cautiously within a legal and compliant framework.