Trump Signs Executive Order to Ignite Market: $9 Trillion in Pension Funds Approved for Cryptocurrency Investment
I. Major Policy Breakthrough: Full Relaxation of Pension Investment Restrictions
U.S. President Trump has officially signed an executive order approving the allocation of up to $9 trillion in 401(k) retirement funds to directly invest in cryptocurrency assets. This marks the first time since the establishment of the U.S. pension system in 1981 that it has opened its doors to digital assets, potentially triggering a large-scale allocation wave of traditional funds.
II. Analysis of the 401(k) Pension Mechanism
Nature of the System
A tax-deferred retirement account established in 1981
Uses a "personal contribution + employer matching" dual contribution model
Operational Features
Contribution Phase: Employees can contribute 1%-15% of their salary (the limit will be raised to $23,500 in 2025)
Tax Policy: Contributions are tax-exempt, and income tax is paid upon withdrawal
Employers are required to match funds according to an agreed ratio
III. Key Points of the 2025 New Policy
Optimized Withdrawal Rules
Normal Withdrawal Age: 59.5 years (10% penalty for early withdrawal)
Mandatory Withdrawal Age: Withdrawals must start proportionately from 70.5 years
Exemptions for Special Circumstances
Major medical expenses
Permanent disability
Long-term unemployment exceeding 12 months can apply for early withdrawal
IV. In-Depth Analysis of Market Impact
Fund Scale Effect
$9 trillion in existing funds now eligible to enter the market
Annual new contribution scale exceeding $300 billion
Market Structure Transformation
Introduction of long-term institutional funds to improve market volatility
Promotion of cryptocurrency assets into mainstream investment portfolios
Potential emergence of new pension-specific cryptocurrency financial products