Bitcoin News Today: Trump to allow crypto in 401(k)s as Bitcoin jumps 2%

President Trump is set to sign an executive order allowing cryptocurrencies to be included in 401(k) retirement accounts, marking a significant shift in U.S. retirement investment policy. The directive, announced by White House Press Secretary Levitt, aims to open the $12.5 trillion 401(k) market to digital assets, potentially boosting institutional adoption and reshaping the retirement investment landscape. The move follows consultations with Secretary of Labor Lori Chavez-DeRemer and instructs the Labor Department to review existing regulations to accommodate crypto in retirement portfolios [1].

The decision allows broader access to assets like Bitcoin and Ethereum, positioning them as viable options for retirement savings. Although the immediate effects remain speculative, the move signals a shift toward greater flexibility for retirement plan sponsors and participants. The executive order seeks to streamline regulatory pathways for alternative assets, including private equity and real estate, and could pave the way for more diverse investment choices within retirement accounts [2].

The announcement has already triggered a strong response in the crypto market. Bitcoin surged over 2% following the news, reaching $116,000 amid optimism about the potential for greater mainstream adoption of digital assets. The price movement reflects investor confidence in the regulatory clarity and market expansion that the executive order may bring [3]. Industry observers suggest that allowing crypto in 401(k) plans could encourage increased institutional interest and accelerate technology integration across the financial sector [4].

This development also highlights the regulatory challenges associated with integrating emerging financial technologies into traditional investment frameworks. A similar attempt in 2020 was rolled back under President Biden, illustrating the shifting political landscape around crypto regulation. However, the latest move signals a broader effort to modernize retirement savings frameworks and accommodate growing interest in alternative investments [5].

While the executive order does not provide a detailed regulatory roadmap, it is expected to address concerns around compliance, custody, and risk management for these new asset classes. Analysts caution that although the policy shift is positive, it does not guarantee widespread adoption or favorable returns for all investors, particularly in a still-developing market [6].

Sources:

[1] https://www.reuters.com/business/finance/trump-sign-order-opening-way-alternative-assets-401ks-bloomberg-news-reports-2025-08-07/

[2] https://bitcoinmagazine.com/markets/bitcoin-price-rallies-to-116000-as-trump-set-to-sign-an-eo-to-allow-bitcoin-and-crypto-to-401ks

[3] https://www.ft.com/content/42f7e2fc-5b42-4f36-ab1d-ea0f72f29468

[4] https://www.coindesk.com/business/2025/08/07/trump-to-greenlight-crypto-in-401-k-s-as-bitcoin-rallies-on-retirement-reform-push

[5] https://www.pionline.com/latest-news/pi-trump-401k-order/

[6] https://cointelegraph.com/news/trump-crypto-401k-executive-order