Bitcoin News Today: Trump Executive Orders Open 401(k) Doors to Crypto, Spark Market Gains

President Donald Trump has issued two executive orders that could significantly boost the cryptocurrency market by expanding access to alternative investments in employer-sponsored retirement plans, including 401(k)s [1]. The first directive instructs the U.S. Department of Labor to revise and reissue guidance that allows cryptocurrencies, private equity, and real estate to be included as investment options within retirement accounts [2]. The policy had been initially introduced during Trump’s first term but was later rescinded under the Biden administration [3]. The new guidance will enable fund managers to assess whether these assets are suitable for retirement portfolios, potentially unlocking billions of dollars in capital for the crypto market [5]. The Department of Labor is also directed to work alongside the Treasury and the SEC to develop a unified regulatory framework for such assets [6].

The second executive order aims to counteract politically motivated financial restrictions, often termed “debanking,” by ensuring that financial institutions remain neutral and are not subject to political pressure when offering services [1]. This move is intended to preserve financial access for a broader range of individuals and entities.

In response to the announcement, the cryptocurrency market showed a positive reaction. Bitcoin rose by more than 2% within 24 hours, pushing its price above $116,000, while Ethereum gained nearly 7%, reaching $3,800 [4]. The overall cryptocurrency market surged in value, increasing by nearly 2% to $3.9 trillion, according to CoinGecko data [4]. Analysts have noted that retirement investors typically employ long-term, systematic strategies, which could lead to sustained demand for crypto assets [4].

The 401(k) market, valued at $8.7 trillion as of Q1 2025, represents a substantial opportunity for expanding the investor base for digital assets [4]. Ryan Rasmussen, head of research at Bitwise, commented that the policy change "is yet another channel of sustained, long-term demand for Bitcoin that will bid the price higher" [4]. Similarly, James Butterfill of CoinShares stated that the move "effectively opens access to Bitcoin and other cryptocurrencies for retirement investors," potentially reshaping the investment behavior of millions of Americans [4].

The executive orders signal a strategic shift in the administration’s approach to financial innovation, promoting access to alternative assets and supporting a more diverse investment landscape [2]. The Labor Department is expected to begin drafting revised guidance, which will undergo review by multiple regulatory agencies before any widespread implementation [4]. As the Department of Labor works to finalize the new rules, the broader financial market will be closely watching for regulatory clarity and potential market expansion [1].

The inclusion of crypto in retirement plans could ultimately reshape how Americans approach long-term investment and financial planning [1]. Analysts anticipate that this development may increase institutional interest in the crypto market, further reinforcing investor confidence [4].

Source:

[1] Trump Signs 2 Executive Orders That Could Boost Crypto Markets – Featured Bitcoin News (https://news.bitcoin.com/trump-signs-2-executive-orders-that-could-boost-crypto-markets/)

[2] Trump opens the door for private equity and crypto as 401(k) retirement plan options (https://www.king5.com/article/news/nation-world/trump-private-equity-crypto-401k-retirement-plan/507-0d8f7a02-f319-4d92-afee-f776e5bc692a)

[3] Trump 401(k) Order Opens Door for Crypto, Private Equity (https://www.nytimes.com/2025/08/07/business/trump-401k-crypto.html)

[4] Bitcoin surges on new Trump measure to allow crypto ... (https://fortune.com/crypto/2025/08/07/bitcoin-price-today-donald-trump-executive-order-401ks-alternative-assets/)

[5] Trump Signs Executive Order That Clears Path for ... (https://www.investopedia.com/trump-to-sign-executive-order-that-clears-path-for-alternative-assets-in-401-k-s-11786947)

[6] Bitcoin surges as Trump backs crypto in 401(k) plans (https://m.economictimes.com/news/international/us/bitcoin-surges-as-trump-backs-crypto-in-401k-plans/articleshow/123169592.cms)