The United States President Donald Trump has officially signed an Executive Order to allow 401(k) investors to diversify into various assets including crypto assets. According to the White House announcement, President Trump directed the Secretary of Labor to consider regulations that regard alternative asset investments to offer better returns.
The order directed the Secretary of Labor to work closely with the Securities and Exchange Commission (SEC), the Secretary of the Treasury, among other agencies to facilitate a seamless diversification of funds held in the 401 (k). Moreover, different crypto assets have different classifications and fall under various regulatory agencies.
“Alternative assets, such as private equity, real estate, and digital assets, offer competitive returns and diversification benefits. Regulatory overreach and litigation risks have limited ERISA-governed plan fiduciaries from including alternative assets in their investment portfolios, hindering workers’ retirement growth,” the Executive Order noted.
President Trump’s EO for the 401 (k) to diversify into alternative assets led by digital assets will have a palpable impact in the ongoing crypto bull market. According to a recent report, Americans have saved more than $8.7 trillion through the 401(k) plan, which can now access the crypto market through regulated channels.
For instance, the 401(k) operators can access the spot crypto ETFs led by Bitcoin and Ethereum. Additionally, the 401(k) operators can tap into stock markets that have invested in crypto asset treasuries such as Strategy (NASDAQ: MSTR).
The entourage of the 401(k) plan to the crypto market will play a crucial role in the ongoing 2025 bull market. Moreover, institutional investors drove the BTC price to a new all-time high even before the 2034 halving event.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Metaplanet has temporarily suspended its 20th to 22nd stock acquisition rights to prioritize expanding its…
Metaplanet is freezing movement, but strategically for its bigger Bitcoin story. The Tokyo-based company has…
Story Highlights The live price of The Graph crypto is . The Graph price is…
In another shocking on-chain exploit, blockchain security firm PeckShieldAlert has revealed that an address linked…
The cryptocurrency market is filled with predictions for the next major bull cycle, and while…
Story Highlights The live price of the Near Protocol token is . Price predictions for…
