The President’s executive order could transform American pension funds by allowing investments in digital assets within 401(k) plans.
According to Bloomberg, President Donald Trump is expected to sign an executive order today that could pave the way for Bitcoin and digital asset investments in 401(k) retirement plans.
The presidential order directs the Department of Labor to remove regulatory barriers currently preventing the inclusion of cryptocurrencies in 401(k) plans. The measure isn’t limited to digital assets — it also expands investment options to private equity and other alternatives like real estate.
Labor Secretary Lori Chavez-DeRemer will be tasked with reviewing the Employee Retirement Income Security Act (ERISA) guidelines and coordinating with federal agencies such as the Treasury Department and the Securities and Exchange Commission (SEC) to implement regulatory changes that enable crypto access in 401(k) plans.
The initiative targets a massive market: roughly $12.5 trillion currently held in defined-contribution retirement accounts. Allowing crypto into 401(k) plans could channel billions of dollars into the market over the coming years.
The move marks a sharp break from Biden-era policies, during which the Department of Labor actively discouraged the inclusion of Bitcoin and cryptocurrencies in 401(k) plans.
The financial industry had already shown interest in integrating digital assets into retirement plans, despite the regulatory uncertainty during Biden’s presidency. Fidelity, for instance, became the first major provider to offer Bitcoin in workplace retirement plans back in 2022.
