Trump Expands 401(k) Access to Crypto and Cracks Down on Crypto Banking Discrimination

President Donald Trump signed two executive orders to advance the role of digital assets in the US financial system. The first order allows 401(k) retirement plans to include cryptocurrencies, while the second targets discriminatory banking practices against crypto firms. The orders aim to revise regulatory interpretations and prohibit federal regulators from using "reputational risk" as a reason to block or discourage banks from servicing crypto companies. Republican lawmakers praised the orders, saying they bring transparency and accountability to the financial system.

President Donald Trump signed two executive orders aimed at advancing the role of digital assets in the U.S. financial system. The first order allows 401(k) retirement plans to include cryptocurrencies, while the second targets discriminatory banking practices against crypto firms. These orders aim to revise regulatory interpretations and prohibit federal regulators from using "reputational risk" as a reason to block or discourage banks from servicing crypto companies. Republican lawmakers praised the orders, saying they bring transparency and accountability to the financial system.

The first executive order, announced on August 7, 2020, directed the U.S. Department of Labor to reassess its guidance on including alternative assets, such as private equity, real estate, and cryptocurrency, in 401(k) retirement plans [1]. This move comes after years of growing interest in adding cryptocurrencies to retirement plans. In April 2022, Fidelity Investments became the first major company to offer digital assets in workplace retirement plans [2]. However, the rules are still unclear, and many workers and employers still want this option.

The second executive order, signed on July 31, 2025, targets discriminatory banking practices against crypto firms. It aims to revise regulatory interpretations and prohibit federal regulators from using "reputational risk" as a reason to block or discourage banks from servicing crypto companies. This move is part of the Trump administration's broader effort to make the U.S. the "crypto capital of the world" [3].

The inclusion of cryptocurrencies in 401(k) plans could bring billions of dollars into the crypto market. Currently, $12.5 trillion is saved in 401(k) and other defined-contribution accounts in the U.S. [1]. The crypto market cap is nearly $4 trillion today [2]. However, financial experts warn that crypto volatility remains a major issue. Companies that manage retirement plans will need to think carefully about these risks before adding crypto to the retirement options [1].

The Trump administration's executive orders reflect a broader trend towards embracing diverse investment vehicles in modern retirement planning. The aim is to empower individuals with more choices, helping them build a robust and resilient retirement fund. The long-term effects of these orders are still unfolding, and it is crucial for investors to stay informed about the updated regulations and their implications for their 401(k) plans. Always conduct thorough research before making any investment decisions, especially concerning new asset classes. Consider consulting with a qualified financial advisor.

References:
[1] https://thecoinrise.com/donald-trump-moves-to-unlock-crypto-in-401k-retirement-plans/
[2] https://www.cnbc.com/2025/08/07/bitcoin-jumps-as-trump-is-set-to-sign-an-order-that-allows-cryptocurrencies-in-401ks.html
[3] https://bitcoinworld.co.in/cryptocurrency-401k-order-impact/