#CryptoIn401k

Recent Policy Changes:

* Executive Order: On August 7, 2025,

President Donald Trump signed an executive order aimed at allowing alternative assets, including private equity and cryptocurrencies, to be included in 401(k) accounts.

* Department of Labor (DOL): The order directs the Department of Labor and other federal agencies to redefine "qualified assets" under the Employee Retirement Income Security Act of 1974 (ERISA), which governs retirement plans.

* Shift in Stance: This represents a change in policy from a previous administration that had advised caution on including crypto in 401(k)s due to volatility and other risks.

How it Works:

* While the executive order opens the door for this, it is not an immediate change. The rulemaking process will take time.

* Employers and 401(k) plan administrators will need to revise their offerings to include these new investment options.

* Some providers already offer access to crypto through "self-directed brokerage windows" within a 401(k), but the new order could lead to more widespread adoption.

Potential Pros and Cons:

* Potential Benefits: Proponents argue that adding cryptocurrencies can offer higher returns and portfolio diversification, as they are not always correlated with traditional assets like stocks and bonds.

* Risks: Cryptocurrencies are known for their extreme price volatility, which could pose a significant risk to retirement savings, especially for those nearing retirement age.