U.S. President Donald Trump is set to allow private equity, real estate, and crypto into 401(k) retirement accounts.
Summary
- Bloomberg reports that Trump’s 401(k) executive order is imminent
- Order would allow crypto, private equity, and real estate in retirement accounts
- Crypto could have access to $12.5 trillion held in 401(k) accounts
Crypto assets could soon tap into the $12.5 trillion retirement market. On Thursday, August 7, President Donald Trump is expected to sign an executive order allowing crypto, among other alternative assets, in 401(k) accounts, according to Bloomberg.
Specifically, Trump will direct the Department of Labor to reevaluate its guidance on how the Employee Retirement Income Security Act applies to alternative assets, including real estate, gold, private equity, and digital assets.
The order also instructs the Labor Department to clarify its position on fiduciary responsibilities when managing funds that include these assets. Labor Secretary Lori Chavez-DeRemer and other top officials will assess whether new rule changes are necessary.
According to officials in Washington, the executive order aims to ease legal concerns around including alternative assets in retirement plans. These plans have historically favored public stocks and bonds while excluding more illiquid or volatile investments to protect retirees.
Bitcoin could soon be part of retirement accounts
Enabling alternative assets in retirement accounts is big news for crypto. This is especially true for Bitcoin (BTC), which is already popular as a corporate treasury asset. If even a tiny percentage of 401(k) holdings are allocated to Bitcoin, this would have a major effect on demand.
Talks about this shift have circulated in Washington for months. On July 17, the Financial Times that the White House was preparing to issue an executive order to expand retirement account access to alternative investments.
Trump took an initial step in this direction during his first term, when the Labor Department clarified that private equity could be included in retirement plans. That guidance was later reversed under President Joe Biden.
