Donald Trump Signs Historic Executive Order: U.S. Retirement Plans Can Invest in Cryptocurrency

U.S. President Donald J. Trump has signed a new Executive Order aimed at expanding access to alternative assets for investors in 401(k) retirement plans.

According to a document released by the White House, with this move, Trump has taken a significant step toward fulfilling his promise to make the U.S. the "Crypto Capital of the World."

The executive order signed today allows contribution-based retirement programs like 401(k) to invest in alternative asset classes such as cryptocurrency, private equity funds, real estate, etc. This will enable investors to achieve higher returns and greater diversification beyond traditional market instruments.

This executive order directs the Secretary of Labor to amend existing guidance on fiduciary duties regarding alternative investments in ERISA-governed retirement plans. The order also aims to clarify the fiduciary procedures that must be followed when incorporating those investments into mutual funds.

This order also requires the Department of Labor to work with the Department of the Treasury, the Securities and Exchange Commission (SEC), and other regulatory agencies to consider parallel regulatory changes. The SEC is also directed to update regulations to facilitate access to alternative assets for individually managed contribution retirement plans.