U.S. President Trump signed an executive order allowing 401(k) retirement plans to invest in cryptocurrencies, private equity, and other alternative assets, unlocking trillions of dollars into the crypto market.
This move not only symbolizes a comprehensive embrace of crypto assets by U.S. policy but will also change the long-standing investment structure of retirement funds, which have primarily focused on stocks and bonds, giving over 60 million American workers their first opportunity to allocate digital assets like Bitcoin in their retirement accounts.
The market reacted quickly after the announcement, with Bitcoin prices rising by 2% and crypto stocks strengthening simultaneously. Analysts believe that institutions will launch more related products, enhancing the industry's infrastructure, and the influx of long-term capital is expected to reduce volatility and improve liquidity.
However, risks also arise, especially for those nearing retirement, who may face financial pressure if the market experiences a significant downturn. The implementation of this policy still requires supportive rules from the SEC and risk management by fund managers, including investment ratio limits and professional advice. In the long term, this will encourage more countries to follow suit, promoting improvements in the global crypto regulatory environment and becoming an important part of the U.S. strategy to build a 'crypto capital.'