President Donald J. Trump signed an executive order on August 7, 2025, in Washington, D.C., expanding 401(k) investment options to include private market assets and cryptocurrencies.
The order democratizes retirement savings access, potentially increasing interest in digital assets. Industry figures praise the move, with immediate market reactions anticipated.
On August 7, 2025, President Trump signed an executive order to expand 401(k) investment options. This policy introduces both cryptocurrencies and private market assets to American retirement plans, aiming for broader access to alternative investments.
The order involves President Trump, the U.S. Department of Labor, and the Treasury Department. It directs a review of fiduciary guidance. American Retirement Association supports the policy for enhancing retirement plan investment flexibility.
Expected Big Changes in U.S. Retirement Portfolios
The order could reshape financial landscapes by integrating alternative assets into retirement portfolios. Industry leaders like Empower and supporting organizations prepare to accommodate new asset classes, potentially affecting millions of U.S. retirees.
Potential impacts entail increased scrutiny from regulators and market participants. While historical precedents exist, the inclusion of digital currencies marks a novel expansion, attracting institutional and public interest in diversified retirement savings.
401(k) Cryptocurrency Inclusion Follows Recent Policy Moves
Similar initiatives include 2020 Department of Labor guidance allowing private equity in retirement plans. The current order extends these options to cryptocurrencies, potentially transforming the retirement landscape and expanding asset diversity in 401(k)s.
Experts at Kanalcoin predict enhanced institutional investment in Bitcoin and Ethereum, based on increased regulatory approval. Historical data suggests that broadened inclusion fosters growth, although regulatory compliance remains crucial.
American Retirement Association’s Perspective
“Professional retirement plan fiduciaries that are subject to strict fiduciary standards—not the federal government—are in the best position to assess developments in the financial markets and determine what is in the financial best interest of retirement plan participants and beneficiaries.” — Brian Graff, CEO, American Retirement Association
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