Trump Opens 401(k) Plans to Crypto Investments
United States President Donald Trump signed an executive order on Thursday, opening the door for Americans to include cryptocurrency and other alternative assets in their 401(k) retirement accounts and defined-contribution plans. This move has sparked a mix of optimism, caution, and criticism from across the financial and crypto sectors.
The order directs the U.S. Labor Department to reevaluate restrictions on alternative assets such as crypto, private equity, and real estate in 401(k)s. According to the Investment Company Institute and the Federal Reserve Board, total U.S. retirement assets reached $43.4 trillion in Q1 2025, with $8.7 trillion held in 401(k)s alone.
Steady Demand Could Reshape the Crypto Market
Bitwise CIO Matt Hougan said this could transform crypto markets by introducing a "slow, steady, consistent bid" from retirement contributions, leading to higher returns and lower volatility.
Crypto Council for Innovation CEO Ji Hun Kim added that this decision affirms digital assets’ place in the U.S. financial system, stating:
“Americans should have the opportunity and freedom to include these investments within their retirement plans.”
Execution Will Be Key to Success
While hailed as a “watershed moment” by 0G Labs CEO Michael Heinrich, he warned that success depends heavily on execution — including which tokens qualify, custody arrangements, and investor protections.
Joshua Krüger of the dEURO Association believes Bitcoin will be the short-term winner due to its strong institutional acceptance. Major asset managers like BlackRock, Fidelity, and Franklin Templeton are already preparing Bitcoin-related retirement offerings.
Potential Pitfalls and Criticism
Not all reactions have been positive. Arthur Breitman, co-founder of Tezos, supports expanding investment options but warns that illiquidity, high fees, and pricing opacity are common risks in private assets.
Meanwhile, gold advocate Peter Schiff criticized the move, arguing it could worsen the U.S. retirement savings crisis:
“By allowing Americans to gamble what little retirement savings they have in their 401(k)s on Bitcoin and other cryptos, Trump just made this problem much worse!”
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