U.S. President Donald Trump is set to sign an executive order that could allow cryptocurrencies and other alternative assets to be included in 401(k) retirement plans.
The move is expected to reshape how Americans invest their retirement savings and potentially bring digital assets further into the financial mainstream.
According to the White House Press Office, the order will direct the Department of Labor to review and reconsider existing restrictions around alternative investments in defined-contribution plans.
This includes assets such as crypto, private equity, and real estate.
Guidance for Fiduciary Oversight
A senior White House official told Cointelegraph that the Labor Secretary would be tasked with clarifying the department’s stance on offering these assets to retirement savers.
The goal is to provide new guidance for fiduciaries managing retirement plans and help them navigate the risks and processes associated with non-traditional investments.
Unlocking a $12.5 Trillion Market for Crypto
The executive order, once enacted, could open the doors for Americans to gain crypto exposure through their 401(k) plans—a market valued at $12.5 trillion.
For the crypto industry, this presents a major breakthrough, allowing firms to access a broader retail base that was previously off-limits due to regulatory and fiduciary constraints.
While institutional investors have increased their crypto holdings in recent years, retail savers have faced barriers due to concerns about volatility, unclear regulation, and compliance risk.
Inter-Agency Coordination in the Works
The White House said that Trump’s directive would also prompt collaboration between the Treasury Department and the SEC to explore necessary rule changes.
These efforts would aim to support broader adoption of alternative assets within retirement portfolios, including digital currencies.
Earlier Signals of Retirement Reform
Reports from the Financial Times on July 18 had hinted at the president’s interest in alternative assets for retirement planning, citing unnamed sources.
White House spokesman Kush Desai echoed this sentiment but noted that no decision should be treated as official unless it came directly from President Trump.
“Desai said Trump is committed to restoring prosperity to everyday Americans and safeguarding their economic future,” Desai told Cointelegraph.
SEC Chair Highlights Risk Education
SEC Chair Paul Atkins emphasized the importance of investor education during an interview with Bloomberg.
He stressed that people must be informed of the risks involved in investing in crypto and suggested that greater transparency is needed.
“I’m looking forward to what the president will do,” Atkins said.
Policy Reversal at the Labor Department
This move follows a shift in stance by the Department of Labor earlier this year.
On May 28, it officially rescinded 2022 guidance that had urged fiduciaries to be “extremely cautious” when offering crypto in retirement plans.
That reversal laid the foundation for Trump’s forthcoming order and signals growing acceptance of digital assets in traditional finance.