Bitcoin News Today: Trump Executive Order Expands 401(k) Options to Include Crypto and Private Equity

President Donald Trump is set to sign an executive order that will significantly expand investment options in U.S. 401(k) retirement plans, allowing alternative assets such as private equity, real estate, and cryptocurrencies—including Bitcoin—to be included [1]. The directive instructs the U.S. Department of Labor to reassess and potentially revise existing regulations under the Employee Retirement Income Security Act of 1974 (ERISA), which governs retirement plans [2]. This move opens the door for the approximately $12.5 trillion in 401(k) assets to be allocated into alternative investments [3].

The order mandates that the Department of Labor also clarify how fiduciary duties apply when plan administrators allocate funds into newly included assets [2]. This is expected to ease regulatory hurdles for administrators seeking to include non-traditional investments in retirement portfolios [3]. The executive action is seen as a major shift in U.S. retirement policy, with the potential to transform the asset management landscape.

In response to the announcement, the crypto market showed immediate signs of optimism. Bitcoin prices climbed from $114,900 to $115,670 within an hour of the news [5]. While the price remains below the psychological $120,000 threshold, the rally has sparked speculation, with futures open interest rising by 1.25% in the following hour [5]. Analysts suggest that the potential for trillions in retirement assets to be directed toward crypto could represent a significant tailwind for the digital asset class [4].

However, immediate market effects are unlikely. According to Jaret Seiberg of TD Cowen Washington Research Group, it could take until 2026 for new regulations to be finalized [5]. Even after that, retirement plan sponsors will need to conduct extensive due diligence and restructuring before new investment options are made available to participants [2].

The move has also sparked a debate over the risks associated with alternative assets in retirement portfolios. Critics argue that many individual investors may lack the knowledge to manage such complex and volatile investments [5]. This has raised concerns about the need for stronger investor education and safeguards to protect retirement savings.

The executive order signals a broader shift toward recognizing alternative assets as a legitimate component of diversified investment strategies [3]. With the potential to unlock trillions in capital, the decision could have lasting implications for financial markets, institutional investors, and asset managers [5].

Source:

[1] https://www.bloomberg.com/news/articles/2025-08-07/trump-to-sign-order-easing-path-for-private-assets-in-401-k-s

[2] https://www.investing.com/news/politics-news/trump-to-sign-order-allowing-alternative-assets-in-401ks-93CH-4175858

[3] https://www.cnbc.com/2025/08/07/trump-order-will-allow-alternative-assets-like-cryptocurrencies-private-equity-in-401ks.html

[4] https://beincrypto.com/bitcoin-rises-as-trump-eyes-crypto-401ks/

[5] https://finbold.com/trump-to-sign-executive-order-today-12-trillion-in-retirement-funds-can-be-invested-in-bitcoin/