Trump Eyes Crypto for US Retirement Accounts
Trump's Executive Order Could Allow Crypto in 401(k)s
Former U.S. President Donald Trump is reportedly planning to sign an executive order that could allow crypto assets within 401(k) retirement accounts. This move signifies a potentially major turning point in U.S. retirement policy and could open doors for broader crypto adoption in mainstream finance.
Bitcoin and Ethereum May Soon Enter Retirement Portfolios
According to Bloomberg, the executive order instructs the Department of Labor to revise its guidance under the Employee Retirement Income Security Act of 1974 (ERISA). The aim is to re-evaluate existing limitations that primarily restrict 401(k) accounts to conventional assets like stocks and bonds. The Labor Department will also collaborate with the Treasury and the Securities and Exchange Commission (SEC) to explore potential regulatory changes for incorporating digital assets.
Currently, assets such as Bitcoin, Ethereum, and private equity are often excluded from retirement portfolios due to concerns about volatility and fiduciary risk. The proposed policy intends to broaden investment opportunities for millions of Americans, potentially including real estate, gold, infrastructure, and private loans.
This action aligns with Trump’s broader goal of positioning the United States as a global hub for crypto innovation. Analysts estimate that allocating just 2 percent of the $12 trillion 401(k) market to cryptocurrencies could result in inflows exceeding $170 billion, potentially driving up digital asset prices.
Several large financial institutions are already preparing for this shift. Fidelity, for example, introduced a crypto retirement product in April 2025. Other firms like BlackRock, Vanguard, and Apollo have also expressed interest in offering similar services, which could accelerate the development of crypto-based retirement options.
This policy shift follows the repeal of Biden-era Labor guidance that cautioned against crypto's volatility. With Trump's support, alternative assets may become more integrated into mainstream retirement planning, offering potential portfolio diversification and improved returns.
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Critics Warn of Crypto Volatility in Retirement Plans
Jason Fichtner, Executive Director of the Retirement Income Institute, views the move as “a long-overdue expansion of investor choice,” suggesting that increased exposure to cryptocurrencies could enhance long-term wealth for Americans.
However, critics express concerns about the inherent risks. Cryptocurrencies are known for significant price fluctuations. For instance, after the executive order news surfaced, Bitcoin's price allegedly rose sharply. Matt Schulz of LendingTree cautions that such volatility may not be suitable for older employees nearing retirement.
Concerns also exist regarding excessive fees and illiquidity associated with certain alternative assets, potentially posing challenges for those with limited financial literacy. Gopi Shah Goda of the Brookings Institution emphasizes the need for robust consumer protection and investor education measures.
Political considerations also play a role. Reports indicate that some top Trump appointees hold substantial crypto portfolios, raising questions about potential conflicts of interest and whether personal motives influenced the administration’s strong support for crypto.
The executive order, if implemented, is likely to lead to the creation of professionally managed crypto funds, rather than direct individual ownership of coins. Regulatory agencies will be responsible for establishing clear guidelines.
While implementation may take several months, this policy could transform how millions of Americans engage with Bitcoin and other digital assets through their retirement plans, signaling crypto's transition from a peripheral asset to a more mainstream financial component.