Bitcoin News Today: Trump Executive Order Allows Crypto in 401(k) Plans

President Donald J. Trump signed an executive order on August 7, 2025, enabling the inclusion of cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) in 401(k) retirement plans [1]. This marks a significant shift in U.S. policy, reversing prior restrictions that limited retirement investors from allocating funds into digital assets [2]. The directive does not require immediate changes to existing 401(k) structures, but it provides regulatory clarity to employers and financial institutions, allowing them to explore adding crypto options to retirement plan offerings [3].

According to the administration, the move is intended to expand investment choices for American workers, offering them alternative assets for “better returns and diversification” [4]. The Department of Labor, the SEC, and the IRS are tasked with revising relevant regulations to facilitate the integration of cryptocurrencies into retirement portfolios [5]. However, experts caution that while the order opens new investment avenues, it also introduces risks due to the high volatility and low liquidity of crypto assets compared to traditional equities and bonds [6].

The policy shift has been welcomed by industry advocates who see it as a step toward greater institutional adoption of digital assets [7]. Cory Klippsten, CEO of Swan Bitcoin, noted that “it was inevitable that bitcoin would make its way into American 401(k)s,” predicting that younger, tech-savvy workers would increasingly favor hard-money assets over traditional retirement options [8]. Despite this optimism, critics argue that many Americans may not possess the necessary understanding or risk tolerance to manage such investments effectively.

Implementation of the policy is expected to take time, as employers and financial institutions navigate the logistical and fiduciary responsibilities associated with including alternative assets in retirement plans [9]. The Trump administration’s directive is also likely to prompt further regulatory scrutiny of other non-traditional assets, potentially leading to the development of new retirement products focused on diversification and alternative returns [10].

The long-term impact of the order will depend on how quickly the market adapts and how well investors are educated about the risks involved. While the move is seen as a major boon for the crypto industry, it also raises questions about investor protection and market readiness [11].

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Source:

[1] AP - [https://apnews.com/article/trump-crypto-401k-private-equity-retirement-plans-d7fdae32d904c9454f4d4eb0b12b88ef](https://apnews.com/article/trump-crypto-401k-private-equity-retirement-plans-d7fdae32d904c9454f4d4eb0b12b88ef)

[2] BBC - [https://www.bbc.com/news/articles/c62w8ewg849o](https://www.bbc.com/news/articles/c62w8ewg849o)

[3] Reuters - [https://www.reuters.com/business/finance/trump-signs-order-broadening-access-alternative-assets-401ks-2025-08-07/](https://www.reuters.com/business/finance/trump-signs-order-broadening-access-alternative-assets-401ks-2025-08-07/)

[4] CoinMarketCap - [https://coinmarketcap.com/community/articles/6896641a40cddd0c7867a972/](https://coinmarketcap.com/community/articles/6896641a40cddd0c7867a972/)

[5] The Guardian - [https://www.theguardian.com/us-news/2025/aug/07/trump-executive-order-cryptocurrency](https://www.theguardian.com/us-news/2025/aug/07/trump-executive-order-cryptocurrency)

[6] CNBC - [https://www.cnbc.com/2025/08/07/new-trump-executive-order-brings-new-investment-options-to-401ks.html](https://www.cnbc.com/2025/08/07/new-trump-executive-order-brings-new-investment-options-to-401ks.html)

[7] ABC - [https://abcnews.go.com/Live/major-401k-trumps-new-crypto-private-equity-rules/story?id=124461859](https://abcnews.go.com/Live/major-401k-trumps-new-crypto-private-equity-rules/story?id=124461859)

[9] The New York Times - [https://www.nytimes.com/2025/08/07/business/trump-401k-crypto.html](https://www.nytimes.com/2025/08/07/business/trump-401k-crypto.html)

[11] WTOP - [https://wtop.com/business-finance/2025/08/what-to-know-about-potentially-adding-crypto-investment-to-your-401k/](https://wtop.com/business-finance/2025/08/what-to-know-about-potentially-adding-crypto-investment-to-your-401k/)