Bitcoin News Today: Trump Executive Order May Allow Bitcoin in 401(k) Plans

Trump’s $9 trillion executive order could significantly reshape the U.S. retirement market by potentially allowing Americans to include Bitcoin and other cryptocurrencies in their 401(k) plans [1]. The directive is part of a broader pro-crypto initiative aimed at "bringing financial freedom back to the people," according to the proposal [1]. Under this order, regulatory agencies will be instructed to assess the feasibility of integrating cryptocurrencies into retirement portfolios and address existing barriers to adoption. The U.S. Department of Labor is also expected to revise rules to expand the types of assets eligible for inclusion in retirement accounts, potentially opening the door to alternative assets such as Bitcoin [1].

Currently, 401(k) plans typically limit investment choices to conventional options like stocks, bonds, and mutual funds. The proposed changes, however, could introduce greater flexibility, enabling employers and plan providers to offer digital asset options without the fear of legal repercussions [1]. This shift reflects the growing mainstream acceptance of cryptocurrencies, as major asset managers—such as BlackRock and Apollo—are reportedly developing crypto retirement products in anticipation of regulatory clarity [1].

The inclusion of Bitcoin in retirement accounts could have far-reaching implications for individual investors. It would allow millions of Americans to begin dollar-cost averaging into Bitcoin through their paychecks without the need to open a separate crypto exchange account [1]. This development follows a recent shift by the Trump administration’s Labor Department, which reversed a Biden-era policy discouraging 401(k) providers from offering crypto options [1]. The reversal laid the groundwork for the executive order and signaled a more crypto-friendly regulatory environment.

For those looking to include Bitcoin in their retirement portfolios, the process would likely begin by checking with their employer or plan provider to confirm the availability of crypto options. Once available, investors could choose from a range of products, including direct Bitcoin exposure, Bitcoin ETFs, or managed portfolios with a digital asset component [1]. Given the volatility of crypto, many experts suggest starting with a small allocation. According to VanEck’s study, a strategic allocation of up to 6% in crypto within a traditional 60/40 portfolio offers the best risk-adjusted returns [1].

If the executive order is finalized, it could also be paired with a proposed crypto tax-free law, offering tax exemptions for small crypto transactions or specific retirement contributions [1]. This potential dual policy would further incentivize the adoption of digital assets in retirement planning. Additionally, a "legal safe harbor" is expected to be included in the order, shielding fiduciaries from liability for offering Bitcoin in retirement plans—a critical factor in overcoming prior hesitations [1].

Major asset managers and institutional investors have already positioned themselves for this potential shift. Blackstone, Apollo, and BlackRock reportedly have partnerships and products in development, waiting for regulatory approval [1]. Meanwhile, public sentiment suggests openness to crypto as a retirement asset, with up to 20% of Gen Z and Alpha generations reportedly open to receiving pensions in cryptocurrency [1].

Legislative support is also emerging at the state level. In March 2025, lawmakers in North Carolina introduced proposals in both the House and Senate that would allow the state treasurer to allocate up to 5% of state retirement funds into cryptocurrencies [1]. This growing momentum at both federal and state levels indicates a shift in how retirement assets are perceived and managed.

As the U.S. retirement landscape evolves, the integration of Bitcoin into 401(k) plans may become a new standard. The move reflects a broader trend of digital assets gaining traction as legitimate investment vehicles. For now, the details of the executive order remain under development, and financial providers are expected to proceed cautiously. However, the regulatory shift signals a significant turning point in the future of retirement investing [1].

Source:

[1] How Trump’s $9T executive order could let you add Bitcoin to your retirement plan (https://cointelegraph.com/news/how-trump-s-9t-executive-order-could-let-you-add-bitcoin-to-your-retirement-plan?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound)