Bitcoin News Today: Trump Eases Rules to Let Crypto and Private Equity in 401(k) Plans

The Trump administration has authorized the inclusion of cryptocurrency and private equity investments in U.S. 401(k) retirement plans through an executive order issued on August 7, 2025. The directive mandates that the Securities and Exchange Commission (SEC), the Department of Labor, and the Treasury collaborate to revise existing investment regulations, enabling the integration of alternative assets such as crypto and private equity into retirement portfolios [1]. This move is seen as a regulatory shift aimed at promoting diversification and competitive returns for retirees, while also supporting the broader crypto industry [2].

The potential impact of the order is significant, given that the U.S. 401(k) market manages approximately $12 trillion in assets. By expanding the investment options for retirement savers, the administration seeks to unlock this capital for alternative asset managers. Some analysts have projected that up to $122 billion in Bitcoin and Ethereum could be drawn into retirement accounts through default flows alone [5]. However, these projections remain speculative and are based on estimates rather than immediate market data [5].

Industry reactions have been mixed, with some firms expressing cautious optimism. BlackRock, for instance, announced plans to launch a new retirement fund incorporating private equity and credit assets. Its CEO, Larry Fink, noted that while the move is positive, legal challenges and investor uncertainty could slow its adoption [3]. Meanwhile, companies like Block Street and DeVere have welcomed the change, viewing it as an opportunity to expand investment options and tap into a growing market [4].

The inclusion of crypto in 401(k) plans introduces new risks for investors, particularly due to the volatility and complexity of digital assets. Cory Klippsten, CEO of Swan Bitcoin, expressed confidence in the long-term appeal of Bitcoin as a hard asset within retirement accounts, especially for younger investors. However, experts caution that private equity and crypto investments historically carry higher risks and may underperform public markets after accounting for fees [6]. This has led to calls for enhanced investor education and stronger safeguards to protect retirement savings [7].

As federal agencies begin the process of implementing the directive, the retirement investment landscape is expected to evolve with new products and increased demand for expertise in alternative asset management. While the order reflects the administration’s broader strategy to reduce regulatory constraints, its long-term success will depend on how effectively it balances innovation with investor protection [2].

Sources:

[1] New Executive Order Directs Agencies to Facilitate 401(k) Access to Private Equity, Cryptocurrency, and Other Alternative Investment (https://www.winston.com/en/blogs-and-podcasts/benefits-blast/new-executive-order-directs-agencies-to-facilitate-401k-access-to-private-equity-cryptocurrency-and-other-alternative-investment)

[2] Trump's 401(k) executive order could mean for investors (https://abcnews.go.com/Live/major-401k-trumps-new-crypto-private-equity-rules/story?id=124461859)

[3] Trump officially signs order allowing Bitcoin in 401(k) plans (https://bitbo.io/news/trump-bitcoin-retirement-order/)

[4] DeVere, Block Street CEOs welcome Trump move to open retirement accounts to crypto (https://www.crowdfundinsider.com/2025/08/247376-devere-block-street-ceos-welcome-trump-move-to-open-retirement-accounts-to-crypto/)

[5] Trump 401k order to drive up to $122 billion into Bitcoin (https://cryptoslate.com/trump-401k-order-could-drive-up-to-122b-into-bitcoin-ethereum-through-default-flows/)

[6] Trump opens the door for private equity and crypto as 401(k) retirement plan options (https://abcnews.go.com/Business/wireStory/trump-opens-door-private-equity-crypto-401k-retirement-124460988)