Trump has officially signed an executive order unlocking the $12.5 trillion 401(k) retirement market for cryptocurrency investments. This move paves the way for millions of Americans to allocate part of their retirement savings into digital assets, marking a historic shift in the U.S. investment landscape.
The landmark executive order aligns with Trump’s pro-crypto policies of putting America on the global map as a crypto leader and innovator. Although the executive order was followed by criticisms, the crypto community and American workers saving towards their retirement welcomed it.
What the 401(k) Executive Order Entails
The White House announced that President Donald J. Trump has signed an Executive Order allowing 401(k) investors to access alternative assets, including private equity, real estate, and digital assets. The Order directs the Secretary of Labor to reexamine and clarify guidance on fiduciary duties for such investments in ERISA-governed 401(k) and other defined-contribution plans, and to work with relevant federal agencies on regulatory adjustments.
By allowing 401(k) investors to access alternative assets, Trump is opening the way for workers to gain access to high-yield portfolios outside the scope of the original 401(k) plan. Over 90 million Americans signed up for the retiree-sponsored contribution plan, but they are restricted from investing in alternative assets, such as crypto. Trump is democratizing access to alternative assets for the American worker to have a stronger and more financially secure retirement outcome.
After signing the executive order, Trump said, “A combination of regulatory overreach and encouragement of lawsuits filed by opportunistic trial lawyers has stifled investment innovation. My administration will relieve the regulatory burdens and litigation risk that impede American workers’ retirement accounts from achieving competitive returns and asset diversification necessary to secure a dignified, comfortable retirement.”
Some Analysts Voice Their Concerns Over the Order
There’s concern among some experts that including digital assets in the 401(k) contribution is risky, given the volatile nature of cryptocurrencies. Also, they are concerned that cryptocurrencies will be used for fraud, given that the act is already rampant.
One of the DIQ analysts says, “Unlocking the 401(k) to include alternative assets is a good idea, but the assets are speculative, and if underregulated, it could be a fatal mistake.” The new investment option has a lower disclosure requirement and can’t be easily exchanged for cash, unlike the publicly traded stocks and bonds that most retirement funds are tied to. Also, investing in cryptocurrencies carries higher fees and exposes contributors to volatility.
Trump will likely make some changes to the investment option, but it may not be soon. Also, some private equity executives may potentially file a lawsuit over the inclusion of digital assets in the 401(k) plan.
Trump Continues to Deliver His Crypto Promises to Americans
Trump, in his campaign, promised to bolster financial opportunities and retirement security for Americans, ensuring they can build wealth and not just survive. So far, he’s been delivering. Under his administration, the United States Department of Labor has rescinded guidance rules regarding cryptocurrencies enacted during the Biden administration. He’s massively driving economic growth through crypto and blockchain innovation. Recall, he promised to make America the “crypto capital of the world.” To that effect, he signed the GENIUS Act into law to regulate stablecoin use and issuance in the country and plans to set up a Bitcoin Reserve.
Also, his Big Beautiful Bill promises to ensure retirees keep more of their hard-earned money. Besides, Trump has been making appointments that align with his crypto ideals. Recently, he appointed current Council of Economic Advisers Chair Stephen Miran to fill a vacant seat on the Federal Reserve Board of Governors until January 31, 2026, succeeding Adriana Kugler, who recently resigned to return to teaching at Georgetown University. Miran has advocated for streamlining cryptocurrency regulations.
Through tariffs, tax cuts, and deregulation, Trump is ensuring that America is wealthy again, empowering workers to save and invest more as they move towards retirement.
Will the 401(k) Plan Help Bitcoin’s Rally?
Bitcoin shows some stability, trading at $116k currently. Experts expected the changes to the 401(k) plan to kickstart a momentum, but the largest cryptocurrency by market cap stood firm. Experts believe that with workers allowed to invest in Bitcoin now, thanks to the executive order, the asset can kickstart momentum again.
According to the chart, Bitcoin trades above the support zone of $116k. A breakout above $118k can push BTC to $119k – $120k. This might be the momentum Bitcoin needs to propel past its all-time high.
Continued institutional demand may also drive up prices. Recently, Harvard invested $116 million in BlackRock’s Bitcoin ETF, according to the SEC. This marks a major institutional move in August 2025.
