Donald Trump Moves to Unlock Crypto in 401(k) Retirement Plans

U.S. President Donald Trump is set to reshape how Americans save for retirement. The White House announced plans to sign an executive order on August 7. If approved, this will allow cryptocurrency, private equity, and other alternative investments in 401(k) retirement plans. The move aims to give American workers more ways to invest for retirement. It is also part of a bigger effort to make digital assets a regular part of the U.S. financial system. Donald Trump Pushes for Modern Retirement Options President Donald Trump wants clear rules so 401(k) plans can include assets like Bitcoin (BTC) and private equity. While other countries are against this initiative , the United States is embracing it, aiming to make digital investments easier and safer for retirement savers. The executive order directs the U.S. Department of Labor to take action that would allow these new types of investments within retirement plans. Labor Secretary Lori Chavez-DeRemer will be responsible for reviewing current rules under the Employee Retirement Income Security Act (ERISA). She is expected to also work closely with the U.S. Treasury and the Securities and Exchange Commission (SEC) to find safe ways to make these changes. Taking A New Direction Different From the Past Administration This move stands in sharp contrast to policies under former President Joe Biden. Biden’s administration warned against using crypto in retirement plans, with the Labor Department stating it was too risky. That guidance has since been withdrawn, and Trump’s new order aims to go further by actively supporting the inclusion of these assets. The SEC is also expected to play a big role by making it easier for 401(k) investors to access crypto products, including Bitcoin exchange-traded funds (ETFs). If approved, the order could bring billions of dollars into crypto markets in the coming years. About $12.5 trillion is currently saved in 401(k) and other defined-contribution accounts in the U.S. Allowing even a small part of that to move into crypto could bring billions into the market. Interest in adding crypto to retirement plans has been growing for years. In April, Fidelity Investments became the first big company to offer digital assets in workplace retirement plans . Even though the rules are still unclear, many workers and employers still want this option. Experts Say Crypto Volatility Remains a Major Issue Even if the new rule is approved, financial experts say there are still big challenges . Crypto prices often go up and down a lot, and it is not always clear how to store or value them safely. Companies that manage retirement plans will need to think carefully about these risks before adding crypto to the retirement options. Nevertheless, this move shows that the Trump administration aims to support innovation in personal finance. It also seeks to give Americans more choice in how they invest for retirement. The post Donald Trump Moves to Unlock Crypto in 401(k) Retirement Plans appeared first on TheCoinrise.com .