US President Donald Trump has signed an executive order that now permits Americans to invest in cryptocurrencies with the help of 401(k) accounts. The significant transformation allows retirement plans throughout the United States to include crypto, private equity, and even real estate investments.
It got orders to reconsider older restrictions on the limits of alternative investments in defined contribution plans, for instance, 401(k)s. The policy reform impacts retirement plans worth more than $12 trillion, with the sum invested in 401(k)s being equivalent to about $8.7 trillion by early 2025.
Crypto leaders believe this move could reshape the market by driving long term and steady investment from retirement contributions. Bitwise’s Matt Hougan said such continuous demand may support crypto prices and stabilize volatility over the coming years.
Joshua Krüger, dEURO Association, described how the initial beneficiary would be Bitcoin, given that it enjoys strong institutional acceptance. Key asset managers like BlackRock, Fidelity, and Franklin Templeton already have crypto-friendly offerings on the market.
ZIGChain Supports Scalable Bitcoin Asset Framework
Ji Hun Kim of the Crypto Council for Innovation referred to the order as a significant step towards providing Americans with financial freedom when it comes to retirement planning. He noted that this could solidify digital assets further within the American financial landscape.
Arthur Breitman, co-founder of Tezos, noted the promise of crypto inclusion, but it comes with the risks of illiquidity along with the possibility of manipulation. He warned investors away from asset pricing concerns as well as hidden fees on private offerings.
0G Labs CEO Michael Heinrich saw the order as a watershed for crypto’s place within regulated finance. Even so, he warned that success would rely on execution, particularly in handling custody and determining asset eligibility.
ZIGChain executive Abdul Rafay Gadit noted the executive order advocates for a scalable tokenized assets ecosystem, as seen with shifting U.S. regulation certainty. He pointed to the most recent SEC leadership efforts under Chairman Atkins to support this broader framework.
All the voices were encouraging regarding the shift, particularly those of perennial crypto skeptics. Economist Peter Schiff expressed the fear that this transition would further exacerbate the nation’s retirement problem by encouraging exposure to risky assets for already unprepared savers.
Experts concur that the executive order will help Bitcoin in the short run, but overall success depends on the regulatory protections and educated investor decisions.
