Bitcoin News Today: Trump to Open $9 Trillion Retirement Market to Crypto

Donald Trump is preparing to sign an executive order that would open the $9 trillion U.S. retirement savings market to alternative assets, including cryptocurrency, gold, and private equity. The order would instruct federal agencies to examine and remove regulatory barriers that prevent 401(k) plans from incorporating digital assets and other non-traditional investments. This move marks Trump’s most recent attempt to increase cryptocurrency adoption and further incorporate it into the American financial system.

If enacted, the policy would allow professionally managed retirement plans to include a broader range of asset classes beyond public stocks and bonds. It would open the door for everyday savers to allocate capital to Bitcoin, private loans, infrastructure funds, and takeover-focused investment vehicles. Additionally, it would offer retirement plan administrators legal safe harbors, lowering liability risks while they explore these riskier, less liquid options. This executive order builds on a series of pro-crypto actions taken since Trump returned to office in January 2025.

Trump has reaffirmed U.S. leadership in digital asset innovation by signing orders creating a Strategic Bitcoin Reserve. His administration has supported several bills to clarify crypto regulation, including those approved by the House of Representatives, and has retracted enforcement actions against companies that hold digital assets. Trump has vowed to repeal what he calls “crippling regulations” put in place by past administrations. His family has also been active in the market, launching their stablecoin and investing more than $2 billion in digital assets through the publicly traded Trump Media & Technology Group.

In addition to helping digital assets, the proposed retirement market reforms would increase access for major private equity firms. These firms have long sought exposure to the 401(k) system, since they believe that even small contributions from American savers could generate hundreds of billions in new inflows. Critics caution that adding illiquid, expensive investments to retirement plans may make it riskier for unsophisticated investors. However, supporters argue that the shift offers diversification, inflation protection, and increased access to the growth potential of emerging sectors like blockchain infrastructure and digital finance.

Trump’s order, if implemented, has the potential to drastically alter the retirement landscape in the United States and further establish cryptocurrency’s place in the nation’s long-term economic strategy. The potential inclusion of cryptocurrencies in 401(k) plans has been a subject of debate, with some advocating for the diversification benefits and others expressing concerns about the volatility and regulatory uncertainties associated with digital assets. The U.S. Labor Department had previously issued guidance that limited the inclusion of cryptocurrency in 401(k) retirement plans, but this guidance was rescinded in May. This move by the Trump administration could signal a shift in policy, potentially opening up new investment opportunities for retirement savers.

Financial services company introduced a new retirement account in April that allows Americans to invest in crypto. This development underscores the growing interest in digital assets as a component of retirement portfolios. The 401(k) market held $8.9 trillion in assets as of September 30, 2024, across more than 715,000 plans, highlighting the significant potential impact of this policy change. At the state level, lawmakers introduced bills in March that could see the state’s treasurer allocate up to 5% of various state retirement funds into cryptocurrencies. This local initiative reflects a broader trend of exploring alternative investments within retirement portfolios. Internationally, other countries are also considering the inclusion of cryptocurrencies in retirement plans. For instance, an unnamed pension scheme made a 3% allocation of Bitcoin into its pension fund. Japan’s Government Pension Investment Fund was also considering Bitcoin as a potential diversification tool.

The executive order, if signed, would mark a significant step towards integrating cryptocurrencies into the U.S. retirement market. However, the final decision rests with President Trump, and no official announcements have been made as of yet. The White House has emphasized that any decisions should be deemed official only if they come directly from the President. This development underscores the evolving landscape of retirement savings and the potential role of digital assets in securing economic futures for everyday Americans.