U.S. President Donald Trump will sign an executive order that could open the door to cryptocurrencies in a 401(k) retirement plan and potentially reshape how Americans invest in savings.
The White House Press Office confirmed Thursday to Cointelegraph that the order directed the U.S. Department of Labor to reevaluate restrictions around alternative assets, including digital assets, private equity and real estate.
Senior White House officials said the order directed the Labor Secretary to clarify the department’s position on alternative assets and provided guidance on the trust process for providing such investments in a retirement portfolio.
Trump to allow cryptocurrency exposure with $12.5 trillion in 401(k) market
Once implemented, the order can grant Americans access to digital assets through its 401(k) program, part of a $12.5 trillion retirement market, and cryptocurrency companies aimed at attracting more retail investors to seek opportunities.
This move will be an important step for the cryptocurrency industry, which has long been seeking the broader retail risk and legitimacy of the financial system.
Despite the increase in crypto allocation by institutional investors, everyday savers are restricted due to trust risks, regulatory uncertainty and volatility issues.
White House officials said Trump’s directives will call for inter-agency coordination with the U.S. Treasury Department and the Securities and Exchange Commission (SEC) to explore rules that may support the adoption of alternative investments such as crypto products.
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Trump has final decision on executive order
On July 18, the Financial Times quoted anonymous sources, saying the president was look Alternative investments such as crypto assets in the U.S. 401(k) retirement plan.
White House spokesman Kush Desai said in a previous statement to Cointelegraph that it should not be considered official Unless it comes from Trump himself.
Desai said Trump is committed to restoring the prosperity of everyday Americans and protecting their economic future. “But unless they are from President Trump himself, no decision should be considered official,” Desai said.
In an interview with Bloomberg, U.S. SEC Chairman Paul Atkins said education on the risks associated with cryptocurrencies is crucial.
Atkins The disclosure is key And it should make people aware of what they are entering. He added that he was looking forward to what the president would do.
Earlier this year, the Ministry of Labor Abolish early guidance For cryptocurrencies in 401(k) plans. On May 28, the Labor Department revoked its 2022 guidance, which urged “very cautious” when focusing on cryptocurrencies for the 401(k) retirement plan.
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