Bitcoin News Today: Trump Eases Crypto and Alternative Assets Access in 401(k) Plans

President Donald Trump has signed a series of executive orders aimed at expanding the range of investment options available in U.S. retirement accounts, including the inclusion of cryptocurrencies such as Bitcoin and Ethereum. The orders, announced on August 4, 2025, seek to loosen restrictions on alternative assets within 401(k) plans, offering Americans greater flexibility in managing their retirement savings [1]. The new directives also permit the inclusion of private equity, real estate, and gold in defined-contribution retirement accounts [2].

Under the executive action, the Securities and Exchange Commission (SEC) has been tasked with revising existing regulations to facilitate broader access to alternative assets. Additionally, Labor Secretary Lori Chavez-DeRemer has been instructed to reevaluate the guidance on fiduciary duties related to such investments and to coordinate with Treasury Secretary Scott Bessent and the SEC to implement necessary regulatory changes [3]. This shift represents a significant departure from the previous administration’s stance, which had raised concerns about the volatility and risk associated with crypto investments.

White House officials have emphasized that the policy aims to provide American workers with more diverse investment opportunities. They argue that private equity, real estate, and digital assets can offer competitive returns and portfolio diversification benefits [4]. The timing of the directive is also notable, as the private equity sector has recently faced a decline in funding after experiencing decades of growth [5]. By opening the door to these assets, the administration is positioning the U.S. to play a leading role in the global crypto industry.

Trump, who has long advocated for the U.S. to become the “crypto capital of the planet,” continues to roll back prior policies that limited the role of digital assets in financial planning. The administration has also directed the White House to explore new approaches to crypto oversight, taxation, and banking rules [6]. This push aligns with broader efforts to foster innovation in the financial sector and attract investment into emerging asset classes.

However, financial experts have raised concerns about the inclusion of high-volatility assets like cryptocurrency in retirement portfolios. Many have warned that such investments could expose millions of Americans to significant financial instability [7]. For instance, while Bitcoin’s price surged to over $120,000 following the announcement of the executive order, critics argue that such volatility may not align with the long-term needs of retirees or near-retirees [2].

The move has also drawn scrutiny over potential conflicts of interest. Some reports indicate that top Trump appointees hold substantial crypto portfolios, raising questions about whether the administration’s support for crypto is driven by public interest or personal financial motives [2]. Despite these concerns, the administration has not provided direct responses to such allegations.

If fully implemented, the policy is expected to create professionally managed crypto funds rather than allowing individuals to hold digital assets directly. Regulatory agencies will play a key role in establishing clear rules to govern these investments [3]. The process is expected to take several months, but in the interim, millions of Americans could begin exploring Bitcoin and other digital assets through their retirement plans [8].

Analysts have speculated that the policy shift could lead to billions of dollars flowing into Bitcoin and Ethereum from retirement accounts, further accelerating the growth of the crypto market [9]. Some forecasts suggest that even a 2 percent allocation of the $12 trillion 401(k) market to crypto could bring in over $170 billion in inflows [2]. While this remains a projection, it highlights the potential scale of the impact.

The inclusion of alternative assets in retirement accounts marks a significant transformation in U.S. financial policy. It also signals a broader shift in how digital assets are perceived, moving from a niche investment to a potentially mainstream financial tool. As the regulatory framework continues to develop, the focus will remain on balancing innovation with investor protection and financial stability.

Source:

[1] https://www.theguardian.com/us-news/2025/aug/07/trump-executive-order-cryptocurrency

[2] https://apnews.com/article/trump-crypto-401k-private-equity-retirement-plans-d7fdae32d904c9454f4d4eb0b12b88ef

[3] https://www.coindesk.com/policy/2025/08/07/donald-trump-signs-order-letting-crypto-into-401-k-retirement-plans

[4] https://ca.finance.yahoo.com/news/trump-wants-put-crypto-401-231159823.html

[5] https://www.investors.com/news/bitcoin-price-cryptocurrency-trump-401k-plans/

[6] https://www.cnbc.com/2025/08/07/trump-bitcoin-401k-what-to-know-about-crypto-for-long-term-investor.html

[7] https://www.newsweek.com/trumps-latest-executive-orders-live-updates-president-sign-new-directives-law-2110273

[8] https://www.aol.com/trump-opens-door-crypto-retirement-231445220.html

[9] https://finance.yahoo.com/news/trump-401k-order-could-send-192158328.html