A massive shift could be coming to how Americans invest for retirement and crypto may finally get a seat at the table.
According to Bloomberg, President Donald Trump is preparing to sign an executive order that would allow 401(k) retirement accounts to include alternative assets like cryptocurrency, private equity, real estate, and even gold. The move could unlock access to the $12.5 trillion 401(k) market for digital assets like Bitcoin.
What’s Happening?
Set to be signed on Thursday, August 7, the executive order will instruct the Department of Labor to revisit its current stance on retirement accounts and the types of assets they can include. The directive specifically asks regulators to reexamine how the Employee Retirement Income Security Act (ERISA) applies to non-traditional investments.
Labor Secretary Lori Chavez-DeRemer and her team are expected to review whether additional rule changes are necessary to expand 401(k) investment options particularly in the fast-growing sectors of crypto, private equity, and real estate.
Why It Matters for Crypto
This is a major milestone for digital assets, especially Bitcoin, which has already gained traction as a corporate treasury asset. Now, if even a small fraction of retirement funds begin flowing into crypto, it could drive massive new demand and legitimacy for the space.
Historically, retirement plans have steered clear of volatile or illiquid assets to protect retirees, focusing mainly on public stocks and bonds. Trump’s move could reshape that conservative approach and usher in a new era of diversified retirement investing.
A Long Time Coming
This executive order has been months in the making. Back in July, the Financial Times reported that the White House was working on expanding retirement account access to alternative investments.
Trump had already started down this path during his first term, when the Labor Department issued guidance supporting private equity in retirement plans. However, President Biden later rolled back that initiative, citing investor protection concerns.
Now, Trump’s latest move could revive and expand that original effort and this time, digital assets are in the spotlight.
What’s Next?
The Labor Department is expected to clarify its stance on fiduciary duties a key hurdle for plan managers wary of including riskier assets. If the guidance becomes favorable, 401(k) providers may soon begin offering crypto exposure directly within retirement accounts.
For investors and the broader crypto industry, this executive order could be a historic breakthrough, giving Bitcoin and other assets access to one of the largest pools of capital in the world.
