Bitcoin News Today: Trump Executive Order Paves Way for Crypto in 401(k)s Bitcoin Rises 1.3% Following Announcement

President Donald Trump is set to sign an executive order directing U.S. regulators to remove barriers preventing cryptocurrencies and other alternative assets from being included in 401(k) retirement plans. This move marks a significant shift in U.S. retirement and financial policy, reversing a Biden-era stance that discouraged the inclusion of digital assets in such accounts [1]. The directive instructs the Department of Labor to collaborate with the SEC and Treasury to revise existing regulations that have historically excluded complex assets from retirement plans [1]. Additionally, it signals a neutral regulatory stance toward digital assets, potentially opening the door for broader market participation.

The executive order is part of a broader effort to mainstream cryptocurrencies, aligning with Trump’s appointment of a crypto “czar” and the establishment of a strategic Bitcoin reserve. It reflects a deregulatory and innovation-focused agenda that may have lasting implications for how Americans approach retirement planning [1].

The immediate market response to the news was positive, with Bitcoin’s price surging from approximately $114,900 to $116,409 following the announcement [2]. Analysts suggest that even modest allocations of retirement savings into crypto could significantly increase demand for digital assets, particularly if recurring and automated contributions become commonplace [1]. The legitimacy of crypto as an investment may also rise, with one Reddit user noting that inclusion in retirement accounts could normalize its use among the general public [1].

However, the move has drawn criticism from some quarters. Critics warn that the inclusion of crypto in retirement plans introduces risks such as high volatility, illiquidity, and challenges in valuation and custody [1]. Senator Elizabeth Warren has voiced concerns that including expensive and risky private assets—alongside crypto—could harm retirees rather than benefit them. Some private equity firms also fear that bundling crypto with traditional alternative assets may invite regulatory scrutiny and public backlash [1].

Despite the executive order, significant regulatory and implementation hurdles remain. Experts estimate that final rules from the Department of Labor may not be in place until 2026, with widespread adoption taking even longer. Initial access to crypto within 401(k)s is expected to be limited to self-directed brokerage windows within large retirement plans [1].

The directive underscores Trump’s broader pro-crypto agenda, which includes easing regulatory restrictions and promoting financial innovation. However, the long-term success of the policy will depend on how regulators navigate the complexities of integrating digital assets into traditional retirement structures while protecting investor interests [1].

Source:

[1] Trump to sign executive order today opening path for... (https://www.theblock.co/post/365956/trump-executive-order-crypto-401k-plan)

[2] Bitcoin Price Rallies To $116000 As Trump Set To Sign An... (https://bitcoinmagazine.com/markets/bitcoin-price-rallies-to-116000-as-trump-set-to-sign-an-eo-to-allow-bitcoin-and-crypto-to-401ks)