Bitcoin News Today: Trump Executive Orders Allow Crypto in 401(k)s for 90M Americans

President Donald Trump has signed executive orders that open the door for millions of Americans to include cryptocurrencies and other alternative assets in their 401(k) retirement accounts [1]. The move, announced on July 28, 2025, targets a demographic of over 90 million individuals, potentially redirecting billions of dollars into the Bitcoin and Ethereum markets [2]. By enabling such investments, the administration aims to expand financial autonomy and diversify retirement portfolios, while also addressing concerns over biased banking practices.

The first executive order, titled Democratizing Access to Alternative Assets for 401(k) Investors, permits workers to allocate their retirement savings into assets such as cryptocurrency, private equity, and real estate [3]. The second, Ensuring Fair Banking for All Americans, prohibits banks from denying services based on a client’s political views, religious beliefs, or legal business activities. Together, these policies are designed to foster a more inclusive financial landscape, ensuring that lawful enterprises and individuals have equitable access to banking services [4].

Industry leaders have reacted with optimism. David Sacks, a prominent digital currency advocate, emphasized the significance of these orders for the crypto sector, noting that they make previously restricted assets accessible to 401(k) participants [5]. Senator Cynthia Lummis praised the move as a milestone for digital assets and suggested it could enhance financial opportunities for millions. Galaxy Digital CEO Mike Novogratz noted that integrating crypto into mainstream retirement platforms like Fidelity could attract both retail and institutional investors [6].

According to some analysts, even a small shift in 401(k) allocations could have a dramatic impact on crypto prices. A 1% reallocation into Bitcoin, for instance, could send the price as high as $271,000, according to political economist Crypto Seth [7]. Another projection from Satoshi Flipper suggested a 5% shift of the $12 trillion 401(k) market into crypto could inject $600 billion into the sector [8]. However, such predictions remain speculative and are based on analyst forecasts rather than current market conditions.

The executive order does not immediately alter 401(k) investment rules but directs federal agencies to revise regulations to allow the inclusion of alternative assets [9]. This process may take months or years to finalize, with major retirement plan providers such as Fidelity and Vanguard likely needing to develop new investment products to accommodate the expanded options [10]. The Department of Labor is tasked with redefining what constitutes a qualified asset under the Employee Retirement Income Security Act (ERISA), a process that could reshape retirement planning for decades.

Despite the enthusiasm, some critics have raised concerns about the risks. Peter Schiff, a gold advocate, warned that channeling retirement savings into volatile assets like Bitcoin could worsen the U.S. retirement crisis [11]. Traditional stock and bond investments offer more stability, and experts caution that crypto’s sharp price swings could expose risk-averse investors to significant losses [12].

Bitcoin rose 1.5% to $116,879 in the wake of the announcement, while Ethereum saw a 5.9% increase to $3,903. The market response suggests confidence in the long-term potential of crypto as part of retirement portfolios [13]. The move is also seen as a reversal of the Biden administration’s more cautious approach to crypto, reflecting Trump’s broader strategy to support innovation in financial markets.

Major investment firms such as TIAA and BlackRock have expressed support for the change, recognizing the growing demand for alternative assets among younger investors [14]. At the same time, crypto firms aligned with Trump’s 2024 campaign stand to gain access to a vast pool of retirement assets, potentially reshaping the industry’s regulatory and financial landscape.

Source:

[1] https://www.reuters.com/business/finance/trump-signs-order-broadening-access-alternative-assets-401ks-2025-08-07/

[2] https://www.cbsnews.com/news/trump-401k-changes-cryptocurrencies-private-equity-executive-order/

[4] https://cryptofrontnews.com/trump-executive-orders-open-401k-access-to-crypto/

[11] https://www.cnbc.com/2025/08/07/new-trump-executive-order-brings-new-investment-options-to-401ks.html