Bitcoin News Today: Trump Executive Order Allows Crypto in 401(k) Plans Could Trigger $800 Billion Bitcoin Influx

President Donald Trump has signed an executive order permitting the inclusion of cryptocurrencies in U.S. retirement plans, a move that could trigger a substantial influx of capital into the crypto market and potentially drive a significant bull run for Bitcoin [1]. The directive expands retirement investment options to include private equity, real estate, and digital assets, signaling a major shift in the regulatory approach to alternative investments. The Labor Department has been tasked with revisiting its stance on these assets within six months and clarifying the fiduciary responsibilities of plan administrators.

The U.S. 401(k) market is estimated to hold roughly $8 trillion in assets [2], and even a small allocation to cryptocurrencies could have a dramatic effect on Bitcoin’s price. Analysts estimate that a 1% allocation would inject approximately $80 billion into the market, equivalent to around 687,500 BTC at current prices. A 5% allocation could surpass $400 billion, while a 10% allocation could reach $800 billion, significantly increasing demand for Bitcoin and other digital assets.

The move aligns with Trump’s broader pro-crypto agenda, which has included initiatives such as hosting a “Crypto Week” at the White House, enacting the first federal stablecoin law, and establishing a Strategic Bitcoin Reserve. The administration has also reduced regulatory pressure on major blockchain companies and appointed the first-ever White House AI and crypto czar.

Bitcoin has already shown a positive response to the regulatory shift, rising 1.93% in the past 24 hours to $117,456, with its market capitalization reaching $2.33 trillion. Ethereum also saw a 5% increase, trading at $3,863. These movements highlight market speculation that the executive order could catalyze a broader inflow of capital into crypto.

The order also mandates inter-agency coordination between the Treasury Department, the Securities and Exchange Commission (SEC), and other relevant bodies to streamline regulatory pathways for alternative investments. This effort aims to create a clearer legal framework for offering crypto options in retirement accounts, potentially encouraging more institutional and retail investors to consider digital assets as part of their long-term financial planning.

Some asset management firms, including Brookfield Asset Management, have already expressed interest in entering the 401(k) alternatives market, including crypto options, during recent earnings calls [4]. This trend indicates that the broader financial industry is preparing for a new era in retirement investing that incorporates digital assets.

The inclusion of crypto in 401(k) plans may also serve as a catalyst for greater regulatory clarity, which has long been a challenge for both retail and institutional investors. As more firms begin offering crypto options in retirement accounts, the market could see increased demand and a more structured, regulated environment for digital asset investments.

The timing of the executive order is significant, coming at a moment when Bitcoin is already experiencing a notable price rebound. With this new regulatory development, the trajectory of Bitcoin could be further accelerated, positioning it as a key component of diversified investment portfolios.

Source:

[1] Bitcoin, https://en.bitcoinsistemi.com/todays-biggest-story-that-went-unnoticed-retirement-plans-could-trigger-a-mega-bull-run-if-they-include-bitcoin-here-are-the-calculations/

[2] Coindoo, https://coindoo.com/how-trumps-401k-crypto-order-could-trigger-a-mega-bull-run-for-bitcoin/

[3] AOL.com, https://www.aol.com/squid-game-season-3-cast-140000921.html

[4] Investing.com, https://ng.investing.com/news/transcripts/earnings-call-transcript-brookfield-asset-management-sees-strong-q2-2025-growth-93CH-2048762