Trump Orders 401(k)s to Consider Crypto and Alternative Assets

Trump’s executive order allowing cryptocurrencies and alternative assets into 401(k) retirement accounts has ignited significant interest and debate within the financial and crypto communities. The directive, signed earlier this week, tasks the U.S. Labor Department with reviewing the inclusion of crypto, private equity, and real estate in defined-contribution retirement plans, potentially reshaping how Americans invest for the future. As of Q1 2025, U.S. retirement assets totaled $43.4 trillion, with over $12 trillion held in defined-contribution plans, including $8.7 trillion in 401(k)s [1].

Industry leaders have highlighted the potential benefits of the move, suggesting it could bring a “slow, steady, consistent bid” for crypto from retirement savings, stabilizing prices and enhancing returns while reducing volatility. Matt Hougan, chief investment officer at Bitwise, emphasized that crypto has been one of the best-performing asset classes over the past decade and is well-positioned for the future [1]. Ji Hun Kim, CEO of the Crypto Council for Innovation, echoed this sentiment, calling the decision a confirmation of digital assets’ role in the U.S. financial system and an important step toward making the U.S. the “crypto capital of the world” [1].

Abdul Rafay Gadit of ZIGChain noted that the order could help build the infrastructure needed for large-scale tokenized investment vehicles, aligning with broader regulatory developments led by SEC Chair Gary Gensler. He pointed to the emergence of a more unified regulatory framework as a key outcome [1]. Joshua Krüger of the dEURO Association predicted that Bitcoin would be the primary beneficiary in the short term, given its strong institutional adoption. He added that asset managers like BlackRock and Fidelity are already preparing products to meet potential demand [1].

However, the long-term success of the policy hinges on its execution. Michael Heinrich of 0G Labs called it a “watershed moment” for crypto’s integration into the financial system but cautioned that poor implementation could lead to political and financial backlash. Key details—such as which tokens qualify, custody arrangements, and regulatory guardrails—remain to be determined [1]. Tezos co-founder Arthur Breitman also expressed cautious optimism, noting that while the U.S. retirement market is large enough to legitimize crypto, high fees and illiquid structures could undermine its effectiveness [1].

Peter Schiff, a vocal critic of crypto and advocate for gold, warned that the move could exacerbate the existing retirement savings gap in the U.S. He argued that allowing Americans to gamble their limited retirement savings on volatile assets like Bitcoin could worsen their financial vulnerability [1].

Source: [1] [Trump Executive Order: Crypto in 401(k)s - Industry Reactions](https://cointelegraph.com/news/trump-executive-order-crypto-401k-industry-reactions)