Bitcoin News Today: Trump executive order allows crypto and private equity in 401(k) plans

President Donald Trump has signed an executive order that opens the U.S. retirement market—worth nearly $9 trillion—to cryptocurrencies, private equity, and other alternative assets for the first time [1]. This marks a significant shift in how Americans can allocate their retirement savings, allowing 401(k) plans to include digital assets like Bitcoin and Ethereum. The directive instructs U.S. regulators to revise the Employee Retirement Income Security Act (ERISA), which governs 401(k) and similar defined-contribution plans. The Labour Department and the Securities and Exchange Commission (SEC) will now clarify fiduciary rules to make it easier for plan sponsors to offer crypto and private equity options [1].

The move is a continuation of Trump’s administration's broader strategy to ease restrictions on digital assets. In May 2025, the Labour Department had already reversed prior guidance under the Biden administration that discouraged the inclusion of crypto in retirement plans [1]. The new executive order accelerates these efforts, encouraging the inclusion of assets such as private equity, real estate, and digital currencies in retirement portfolios.

The U.S. 401(k) market currently holds around $9 trillion in assets, with the broader defined-contribution market estimated at $12.5 trillion [1]. Even a small allocation to crypto could generate hundreds of billions in demand, potentially boosting innovation and infrastructure in the digital asset sector. Nigel Green, CEO of deVere Group, describes this as a “defining moment for crypto,” noting that the world's largest economy is now recognizing digital assets as a legitimate part of long-term wealth strategies [1].

For asset managers such as BlackRock, Apollo, and Blackstone, the move presents a major opportunity. These firms have long advocated for the inclusion of alternative assets in retirement portfolios. BlackRock, for instance, plans to launch a 401(k) target-date fund with a 5–20% allocation to private investments by 2026 [1]. Apollo and Empower are also developing products aimed at capturing this expanding market.

For individual investors, the order introduces new possibilities for diversification. Historically, private equity has outperformed public markets, and Bitcoin has outperformed the Nasdaq in five of the last six years [1]. However, experts warn of the risks associated with these assets. Cryptocurrencies are known for their volatility, while private equity investments often suffer from illiquidity and high fees. Michael Ryan, founder of MichaelRyanMoney.com, calls the move “revolutionary” for informed investors but cautions that the average American may not fully understand the risks involved [1].

The order builds on a 2020 Labour Department letter from Trump’s first term that permitted private equity in target-date funds under strict conditions. The current directive goes further, encouraging a broader range of alternative assets in retirement portfolios. Regulators are now tasked with acting swiftly to implement rule changes that will clarify how fiduciaries can safely incorporate these assets into retirement plans [1].

The move also reflects a broader trend of increasing legitimacy for cryptocurrencies. States like North Carolina and Wisconsin have already allocated retirement funds to Bitcoin and Ethereum ETFs [1]. Meanwhile, the U.S. House passed three crypto-friendly bills in July 2025, signaling growing political support for the industry. Nigel Green suggests that this shift could prompt other countries to reconsider their own pension and investment strategies, potentially reshaping the global financial landscape [1].

Sources:

[1] title: Trump signs executive order allowing Americans hold cryptos in retirement portfolio (url: https://coinmarketcap.com/community/articles/6894ed18d451fb53687c51fb/)