Trump Executive Order: Crypto May Soon Be Allowed in 401(k) Retirement Plans
Donald Trump has signed an executive order directing federal agencies to enable the inclusion of cryptocurrencies, private equity, and real estate as options in 401(k) retirement accounts. This move could open trillions of dollars in retirement savings to investment in digital assets and alternative asset classes, subject to regulatory changes that may take months to implement.
Key facts:
- The order directs the Labor Department, SEC, and Treasury to revise definitions and regulations to permit crypto and other alternative assets in 401(k)s.
- The change may mean that, once implemented, Americans could allocate part of their retirement savings to crypto through employer-sponsored retirement accounts.
- While some analysts see diversification and higher return potential, experts also warn these assets are volatile and risky compared to traditional stock and bond investments.
- The order does not force plans to offer crypto, but makes it easier for employers and asset managers to include these options—though employers remain responsible for prudent, worker-first plan choices under ERISA fiduciary rules.
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