Trump Authorizes Crypto for Retirement Accounts
President Donald Trump has signed an executive order allowing Americans to include cryptocurrencies, private equity, and other alternative assets in their 401(k) and defined-contribution retirement plans. The policy marks a significant shift, opening a new path for digital assets in US retirement portfolios.
Expanding Investment Options
The move could bring substantial capital into the crypto sector. According to recent figures from the Investment Company Institute and the Federal Reserve Board, total US retirement assets stood at $43.4 trillion in the first quarter of 2025, with 401(k)s and other defined-contribution plans accounting for over $12 trillion.
Industry voices expect both opportunity and risk as the new policy unfolds. Matt Hougan, chief investment officer at Bitwise, said that steady inflows from retirement accounts could stabilize and strengthen crypto markets over time. He noted that crypto has been among the top-performing asset classes in the last decade.
Ji Hun Kim, CEO of the Crypto Council for Innovation, called the announcement an affirmation of digital assets' role in the country's financial system and praised the administration's commitment to clearer regulation.
Infrastructure and Regulatory Implications
Abdul Rafay Gadit, co-founder of ZIGChain, a blockchain compliance platform, stated that the order lays groundwork for expanding tokenized investment products at a large scale. Gadit tied this action to broader regulatory developments led by the Securities and Exchange Commission, suggesting that a more unified framework is emerging for crypto oversight.
Michael Heinrich, CEO of 0G Labs, called the executive order a "watershed moment" for integrating crypto into the mainstream financial system. However, he emphasized that implementation details are crucial, warning that poor execution could result in instability or backlash.
Short-Term and Long-Term Effects
Joshua Krger, head of growth at the dEURO Association, predicted that Bitcoin would likely be the first cryptocurrency incorporated into regulated pension products, citing strong institutional interest from firms like BlackRock, Fidelity, and Franklin Templeton. He said other crypto assets might gain access over time as products and regulatory standards mature.
Tezos co-founder Arthur Breitman acknowledged the potential for legitimizing crypto investments but flagged common challenges with alternative assets, such as illiquidity, higher fees, hard-to-value pricing, and the potential for mismanaged volatility.
Criticism from Financial Traditionalists
Not all reactions were positive. Peter Schiff, an outspoken gold advocate and critic of cryptocurrencies, said that expanding access to crypto in retirement accounts would worsen concerns over inadequate US retirement savings. Schiff argued that exposing savers to crypto could increase risk for those with limited pension assets.
The policy change is set to take effect as the US retirement industry, asset managers, and crypto firms prepare to navigate new opportunities and challenges in portfolio construction, investor education, infrastructure, and oversight.
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