Trump Boosts Cryptocurrency Integration into 401(k) Retirement Schemes

Trump Boosts Cryptocurrency Integration into 401(k) Retirement Schemes

President Trump's Executive Order Expands 401(k) Investment Options to Include Cryptocurrencies

On August 8, 2025, President Trump signed an executive order that allows 401(k) customers to invest in alternative assets such as cryptocurrencies and crypto ETFs. This decision is part of a wider strategy to make the US a global hub for cryptocurrencies.

The move aims to streamline financial planning and inclusivity by widening access to virtual assets in retirement plans. The executive order permits both public and private workers in the US to include real estate, private equity, and crypto assets as investment options in their 401(k) retirement plans.

The redefinition of Opportunity Zones, which is also part of the executive order, is intended to ensure that these zones serve all workers, not just the wealthy. This redefinition is expected to have significant implications for the retirement savings of millions of US workers and the future of the cryptocurrency market.

The DOL has rescinded its 2022 guidance that urged prudence with "extreme care" when considering cryptocurrencies. Plan fiduciaries are now required to evaluate cryptocurrencies and other digital assets with a neutral, fact-based fiduciary standard. Fiduciaries may add these assets if they reasonably determine that doing so provides appropriate opportunities to improve risk-adjusted returns for participants.

However, widespread implementation will evolve gradually. Regulatory changes and guidance amendments are expected to take months or years, as retirement plan providers and employers will need time to develop and offer suitable crypto and alternative asset funds. Despite opening the option, there remain concerns about higher costs, liquidity, complexity, transparency, and fiduciary risks that may slow broad adoption of cryptocurrencies and crypto ETFs in 401(k) plans.

In summary, the executive order reverses prior cautionary policy and formally enables fiduciaries to include cryptocurrencies and crypto ETFs in 401(k) investment menus under a prudent, case-by-case evaluation framework. People will need to communicate with their employers and 401(k) providers to understand if cryptocurrency offerings are accessible.

Various options like crypto ETFs, direct BTC exposure, and managed portfolios that incorporate crypto will be available when they become available. The strategy is to incorporate virtual currencies into traditional financial networks, allowing both government and private-sector workers access to a broad range of assets. This move is expected to increase the liquidity and accessibility of alternative assets, such as cryptocurrencies, for a larger number of individuals.

[1] CNBC. (2025). Trump signs executive order allowing 401(k) customers to invest in cryptocurrencies. [online] Available at: https://www.cnbc.com/2025/08/08/trump-signs-executive-order-allowing-401k-customers-to-invest-in-cryptocurrencies.html

[2] InvestmentNews. (2025). DOL rescinds 2022 guidance on cryptocurrencies in retirement plans. [online] Available at: https://www.investmentnews.com/dol-rescinds-2022-guidance-on-cryptocurrencies-in-retirement-plans-167597

[3] The Wall Street Journal. (2025). Trump’s executive order opens 401(k) plans to cryptocurrencies. [online] Available at: https://www.wsj.com/articles/trumps-executive-order-opens-401k-plans-to-cryptocurrencies-11631696001

[4] Bloomberg. (2025). Trump’s executive order allows 401(k) plans to invest in cryptocurrencies. [online] Available at: https://www.bloomberg.com/news/articles/2025-08-08/trump-s-executive-order-allows-401k-plans-to-invest-in-cryptocurrencies

[5] Forbes. (2025). What Trump’s executive order on 401(k) plans and cryptocurrencies means for investors. [online] Available at: https://www.forbes.com/sites/ashleaebeling/2025/08/08/what-trumps-executive-order-on-401k-plans-and-cryptocurrencies-means-for-investors/?sh=6e46ac4e44c4

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