U.S. President Donald Trump is preparing to sign an executive order that would permit cryptocurrencies to be included in American workers’ 401(k) retirement plans — a potential game-changer for both retirement investing and the broader crypto industry.
According to the White House Press Office, the order tasks the Department of Labor with reassessing current limitations on non-traditional assets in defined-contribution retirement plans. This review will include digital currencies, private equity, and real estate.
A senior administration official explained that the labor secretary will be directed to clarify the government’s position on these alternative investment options and issue updated guidance for fiduciaries managing retirement portfolios.
Crypto to Enter the $12.5 Trillion 401(k) Space
The policy would open the door for millions of Americans to gain exposure to crypto assets through their retirement savings — a market valued at approximately $12.5 trillion. For crypto companies, this marks a significant opportunity to expand their reach to the mainstream investment community.
For years, the digital asset industry has pushed for more widespread access and recognition in traditional financial systems. While institutional interest in crypto has grown, average savers have been left on the sidelines due to regulatory uncertainty and fiduciary liability concerns.
The administration also confirmed that the executive order will promote collaboration between federal agencies, including the Treasury Department and the Securities and Exchange Commission (SEC), to explore potential regulatory adjustments needed to support this transition.
Retirement System Reform on the Horizon
Back on July 18, Financial Times reported that Trump was seriously considering allowing crypto and other alternatives into retirement savings accounts, citing unnamed sources familiar with the matter.
Kush Desai, a White House spokesperson, emphasized that official announcements should only be considered valid if delivered directly by the president. He added that Trump remains committed to enhancing the financial security of ordinary Americans.
SEC Chair Paul Atkins recently told Bloomberg that investor education on crypto is crucial. He highlighted the importance of full transparency, saying that people must understand the risks tied to such investments, and expressed anticipation for the president’s next steps.
Earlier this year, on May 28, the Labor Department officially withdrew a 2022 guidance that had warned plan fiduciaries to act with extreme caution when considering crypto in 401(k) portfolios — signaling a shift in the federal stance even before the executive order.
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