Bitcoin News Today: Trump to allow crypto and private assets in 401(k)s via executive order

U.S. President Donald Trump is set to sign an executive order that will allow cryptocurrencies, private equity, and real estate to be included in 401(k) retirement plans, marking a significant shift in federal retirement investment policy [1][2]. The directive, expected to be finalized in late July 2025, will direct the U.S. Department of Labor to reassess rules established under the Employee Retirement Income Security Act of 1974 (ERISA) to accommodate alternative assets in retirement portfolios [3]. The move is part of a broader effort by the Trump administration to position the United States as a global leader in the digital asset space [2].

Under the new directive, 401(k) participants may gain access to a wider range of investment options, including digital assets like Bitcoin, which have historically been restricted due to their volatility and complexity [5]. The potential impact is substantial, as 401(k) accounts collectively hold more than $12.5 trillion in assets [4], a market that could now be opened to alternative investments previously available only to accredited investors. The inclusion of such assets is expected to offer savers greater flexibility and the potential for higher returns [3].

The executive order will also task Labor Secretary Lori Chavez-DeRemer with coordinating with the Treasury Department and the Securities and Exchange Commission (SEC) to streamline access to alternative investments [3]. This collaborative effort aims to reduce compliance hurdles and create a more accessible framework for individual investors seeking exposure to private and digital assets [2].

This move follows a series of pro-crypto initiatives by the Trump administration, including the creation of a Strategic Bitcoin Reserve, the release of a 166-page crypto policy report by the Digital Asset Working Group, and the first federal regulation for stablecoins [1]. The White House also hosted a multi-day event known as “Crypto Week,” underscoring the administration’s commitment to advancing the digital economy [1].

While the new policy removes regulatory barriers, it does not automatically integrate these assets into all 401(k) plans. Employers and plan administrators will still need to make deliberate decisions to include them, and additional clarity may be needed on custodial structures and risk management protocols [6]. Analysts suggest that financial firms may respond by developing new products designed to incorporate these alternative assets into retirement offerings [5].

The move has been widely seen as a pivotal moment in the integration of digital and alternative assets into mainstream financial planning [1]. As the regulatory environment evolves, it remains to be seen how quickly and widely these new investment options will be adopted across the retirement market.

Sources:

[1] title: Trump to sign order easing path for private assets in 401(k)s

url: https://finance.yahoo.com/news/trump-sign-order-easing-path-101737571.html

[2] title: Trump Set to Greenlight Crypto in 401(k)s; Bitcoin Rallies

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

[3] title: Trump expected to sign order on private assets in 401(k)s

url: https://www.msn.com/en-us/money/savingandinvesting/trump-expected-to-sign-order-on-private-assets-in-401-k-s-report/ar-AA1K5oUw?ocid=finance-verthp-feeds

[4] title: Crypto Gains On Expectation That Trump Executive Order

url: https://stocktwits.com/news-articles/markets/equity/crypto-gains-on-expectation-trump-executive-order-will-greenlight-401k-access/chrm256Rddp

[5] title: Trump to sign order allowing alternative assets in 401(k)s

url: https://www.investing.com/news/politics-news/trump-to-sign-order-allowing-alternative-assets-in-401ks-93CH-4175858

[6] title: Trump Signs Order Allowing Crypto and Real Estate in 401

url: https://coincentral.com/trump-signs-order-allowing-crypto-and-real-estate-in-401k-accounts/