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Trump will sign an executive order allowing crypto and private equity in 401(k) plans.
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The Labor and SEC departments are directed to create new rules.
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The move targets over $12 trillion in retirement savings.
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It reverses anti-crypto policies from the previous administration.
New Rules for Retirement Accounts
President Donald Trump is signing an executive order that would allow cryptocurrency, private equity, and other alternative investments in 401(k) retirement plans. The directive tells the Labor Department and SEC to figure out how to safely include these assets.
This could allow millions of Americans to invest in crypto directly through their workplace retirement accounts.
Regulatory Agencies Must Update Policies
Labor Secretary Lori Chavez-DeRemer will coordinate with the Treasury and SEC to revise current retirement plan rules. The goal is to make it clear how plan managers can safely offer crypto products like Bitcoin ETFs to investors.
The SEC is expected to play a key role in ensuring access and outlining risk management strategies.
Reversing the Previous Stance
This move builds on a May reversal of anti-crypto policies from the Biden administration. Trump’s team says the earlier rules unfairly discouraged crypto by tipping the scales against innovation.
According to Bloomberg, this is Trump’s strongest step yet toward integrating digital assets into U.S. financial systems.
Billions Could Flow Into Crypto
With $12.5 trillion currently held in 401(k) plans, the order could open the door to significant crypto adoption. Plan sponsors will still need to manage risks like volatility and custody, but this change marks a huge shift in policy and access.
