Trump Executive Orders Expand 401(k) Digital Asset Access and Crack Down on Banking Bias

The Trump Administration has taken a significant step toward reshaping retirement investment options in the United States by expanding access to digital assets for private-sector workers. On August 7, President Donald Trump signed an executive order that permits over 90 million workers to include alternative assets, such as cryptocurrencies, in their 401(k) retirement plans. The change aims to broaden investment choices beyond traditional mutual funds and encourage portfolio diversification and potentially improved long-term returns for millions of Americans [1].

The Department of Labor is tasked with reviewing its fiduciary duty guidelines under the Employee Retirement Income Security Act (ERISA) to ensure compliance with the new framework. In coordination with the Treasury and the Securities and Exchange Commission (SEC), the administration will update regulations to facilitate greater access to alternative assets in defined-contribution retirement plans. The SEC is specifically directed to revise rules to improve access to these investment options, addressing a long-standing disparity that previously limited such opportunities to institutional investors and government employees [1].

Alongside the retirement plan update, the administration also signed a second executive order targeting discriminatory banking practices. This directive prohibits financial institutions from denying services based on an individual’s political views, religious beliefs, or lawful business activities. Banks that have engaged in such practices face regulatory scrutiny and potential corrective actions, including fines or consent decrees. The Small Business Administration is instructed to ensure banks reinstate clients who have been unfairly denied services due to these reasons [1].

The administration highlighted past cases of biased financial practices, including instances where banks allegedly declined payment processing for events tied to specific political groups or flagged customers for transactions with certain retailers. These actions, often without legal justification, have contributed to a system where some individuals and businesses have been unfairly excluded from financial services. The executive order aims to create a more equitable banking environment and prevent future occurrences of politicized banking decisions [1].

By expanding access to digital assets in retirement accounts and addressing banking discrimination, the Trump Administration is working to modernize financial planning and promote financial inclusion. These changes reflect a broader strategy to integrate digital assets into mainstream financial systems and ensure that both private- and public-sector workers have equal opportunities to diversify their retirement investments [1].

Source: [1] Trump Administration Expands Retirement Account Access to Digital Assets (https://cryptonewsland.com/trump-administration-expands-retirement-account-access-to-digital-assets/)