U.S. President Trump signed an executive order on Thursday allowing Americans to include cryptocurrencies and other alternative assets in their 401(k) retirement accounts and other defined contribution plans. This policy change has sparked a mix of optimism and caution within the cryptocurrency industry.
Trump's executive order instructs the U.S. Department of Labor to reassess the restrictions on injecting cryptocurrencies, private equity, and real estate as alternative assets in 401(k) and other defined contribution plans.
As of the first quarter of 2025, the total retirement assets in the U.S. amount to $43.4 trillion, including $8.7 trillion in 401(k) plans. This change could inject billions of dollars into cryptocurrencies, leading to widespread discussion among industry insiders.
Stable demand may reshape the cryptocurrency market.
Bitwise Chief Investment Officer Matt Hougan said this change will transform the cryptocurrency market through the continued investment of pension funds. He believes this will lead to higher returns and lower volatility. He also noted that cryptocurrencies have been the best-performing asset class over the past decade and will continue to lead in the next decade.
Ji Hun Kim, CEO of the Crypto Council for Innovation, emphasized that this decision affirms the role of digital assets in the U.S. financial system. He believes Americans should have the opportunity to include these investments in their retirement plans.
The success or failure of the execution has far-reaching implications.
Michael Heinrich of 0G Labs called this a 'milestone' for the integration of cryptocurrencies into the financial system, but also warned that it could trigger political and financial backlash. He pointed out that details such as which tokens qualify, how custody will be handled, and what guardrails will be established are crucial.
Joshua Krüger of the dEURO Association believes that in the short term, Bitcoin (BTC) is most likely to benefit due to its highest acceptance among institutions.
Peter Schiff believes it could exacerbate existing problems.
Not everyone in the financial community welcomes this news. Gold supporter and cryptocurrency critic Peter Schiff warned that this development could exacerbate the retirement savings gap in the United States.
