Bitcoin News Today: Trump executive order eases 401(k) access to crypto and private equity

President Donald J. Trump signed an executive order on August 7, 2025, to allow 401(k) investors to include alternative assets such as cryptocurrency and private equity in their retirement accounts. The move expands investment options for over 90 million Americans participating in employer-sponsored defined-contribution plans, who have historically been restricted from accessing such assets [1]. The order does not immediately change how individuals manage their retirement investments but clears the regulatory path for future changes by directing the Secretary of Labor to reassess Department of Labor guidance on fiduciary responsibilities for alternative investments in ERISA-governed plans [1].

The executive order also instructs the Secretary of Labor to collaborate with the Treasury Department, the Securities and Exchange Commission (SEC), and other federal regulators to determine whether further regulatory modifications are needed. The SEC is tasked with revising regulations to facilitate access to alternative assets for participant-directed retirement plans [1]. The directive aims to relieve regulatory burdens and litigation risks that have previously impeded retirement accounts from achieving competitive returns and diversification [1].

This move is part of Trump’s broader strategy to promote retirement security through diversified investment options. He has previously emphasized the importance of embracing digital assets for economic and technological leadership, with a goal of making the United States the “crypto capital of the world” [1]. Trump’s Department of Labor has already rescinded guidance issued by the previous administration that restricted digital asset investments [1].

Experts have highlighted both the potential benefits and risks of including cryptocurrency and private equity in 401(k) plans. These assets can offer competitive returns and diversification advantages but are associated with higher volatility and risk [3]. The executive order seeks to address the legal and regulatory concerns that have discouraged plan fiduciaries from including such assets in investment portfolios [1].

While the order opens the door for asset managers to offer crypto-backed investment products for 401(k) plans, it does not specify immediate implementation steps. The Department of Labor has signaled its intent to provide legal protections for retirement plan providers who offer these new investment options [5]. Major asset managers, including BlackRock, have reportedly been lobbying for such regulatory shifts, and the move has been welcomed as a significant development for the broader crypto market [1].

The U.S. pensions market is projected to reach $10 trillion by 2030 with an annual compound growth rate of 9% [1]. Analysts suggest that this development could increase demand for digital assets, although the extent of the impact on Bitcoin’s price remains to be seen [1].

Sources:

[1] Fact Sheet: President Donald J. Trump Democratizes Access to Alternative Assets for 401(k) Investors (https://www.whitehouse.gov/fact-sheets/2025/08/fact-sheet-president-donald-j-trump-democratizes-access-to-alternative-assets-for-401k-investors/)

[2] What to Know About Potentially Adding Crypto Investment to Your 401(k) (https://wtop.com/business-finance/2025/08/what-to-know-about-potentially-adding-crypto-investment-to-your-401k/)

[3] What 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)

[4] Trump Opens Door for 401(k) Retirement Plans to Invest in Private Equity and Crypto (https://www.pbs.org/newshour/politics/trump-opens-door-for-401k-retirement-plans-to-invest-in-private-equity-and-crypto)

[5] 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)