President Trump Issues Executive Order Permitting Bitcoin and Other Cryptocurrencies in 401(k)s

U.S. President Donald Trump has signed an executive order, paving the way for investors to include alternative assets like digital ones in their 401(k) plans. The order instructs the Secretary of Labor to reevaluate the existing guidelines in relation to fiduciary duties concerning alternative asset investments in ERISA-regulated 401(k) and other defined-contribution schemes.

This move is part of Trump's broader strategy to position the U.S. as a global leader in the cryptocurrency industry, noting that alternative assets including private equity, real estate, and cryptocurrencies provide competitive returns and diversification benefits. The announcement has positively impacted the cryptocurrency market, with Bitcoin's price exceeding $117,000 and Ethereum recording a 5% increase. The total market capitalization currently stands at $3.93 trillion.