According to a Bloomberg report, U.S. President Donald Trump is set to approve an executive order that would allow Americans to diversify their 401(k) retirement plans by including alternative assets such as cryptocurrencies, real estate, and private equity.
The executive order is expected to be signed on Thursday. The U.S. Department of Labor will reevaluate the rules established by the Employee Retirement Income Security Act of 1974 (ERISA). It will specifically examine the rules regarding the inclusion of alternative assets in retirement portfolios.
Allowing private market products in 401(k) accounts could open nearly $12.5 trillion in retirement investments to options that were previously only available to certain accredited investors. Proponents of this option believe that including choices like cryptocurrencies and private equity could provide savers with greater flexibility and the potential for higher returns.
Trump's directive will also request Labor Secretary Lori Chávez-DeRemer to collaborate with key agencies such as the Department of the Treasury and the Securities and Exchange Commission (SEC). This teamwork aims to explore changes that facilitate individual savers' access to alternative investment options for retirement.
This executive measure is the latest in a series of actions by the Trump administration to boost cryptocurrencies. Earlier this year, Trump issued an order to establish a Strategic Bitcoin Reserve and a larger reserve of digital assets to secure the United States' dominance in the digital economy.
Additionally, the administration released a 166-page report on cryptocurrencies, prepared by the Digital Assets Working Group. The report outlined an ambitious plan for the country's role in the digital assets economy. It urged regulators to facilitate the adoption of cryptocurrencies and simplify compliance rules. This would help maintain the United States as a leader in blockchain innovation. The report described the upcoming changes as a "Golden Era of Cryptocurrencies," demonstrating Trump's dedication to making the United States a global leader in cryptocurrencies.
The White House also held "Cryptocurrency Week," a multi-day event focused on important issues for the industry. During this event, President Trump signed the first federal law to regulate stablecoins.
Trump's upcoming executive order could significantly change the integration of cryptocurrencies and other alternative assets into the conventional financial system. By focusing on the $12.5 trillion retirement market, this policy could transform the way Americans save for their future.
