US President Donald Trump is reportedly preparing to sign an executive order that could open the doors for American 401(k) retirement plans to invest in alternative assets, including crypto, metals, and infrastructure-focused funds. According to a report by the Financial Times, the executive order could be signed as early as this week, citing three individuals familiar with the discussions. If signed, the order would direct US regulatory agencies to examine how 401(k) plans can begin investing in digital assets and identify any legal or regulatory barriers that need to be addressed to facilitate these investments. The move could significantly diversify the options available to American workers planning for retirement, shifting from the traditional focus on stocks, bonds, and mutual funds to include emerging asset classes like cryptocurrencies. In a recent statement, White House spokesperson Kush Desai clarified that no decision should be considered official unless announced directly by President Trump. Desai emphasized Trump’s commitment to ensuring economic prosperity for everyday Americans while safeguarding their financial future. Crypto in Retirement Accounts Gains Momentum This development follows the US Labor Department’s decision in May to rescind guidance from the Biden administration that had restricted the inclusion of digital assets in 401(k) plans. The shift comes amid increasing institutional interest in crypto within retirement accounts. In April, Fidelity, managing $5.9 trillion in assets, introduced a new retirement account product allowing Americans to invest in cryptocurrencies as part of their long-term savings strategies. Traditionally, 401(k) plans have focused on investments in mutual funds, stocks, bonds, and exchange-traded funds, with the US 401(k) market holding approximately $8.9 trillion in assets across more than 715,000 plans as of September 2024. Governments Exploring the Idea States are also showing interest in crypto investments for retirement portfolios . In March, lawmakers in North Carolina proposed bills that would enable the state’s treasurer to allocate up to 5% of certain state funds into Bitcoin and other digital assets. Globally, pension schemes in the United Kingdom and Japan have also explored the possibility of adding Bitcoin to their retirement portfolios, highlighting a growing trend toward the inclusion of digital assets in long-term investment strategies. The post Trump Eyes Executive Order to Allow Crypto in 401(k) Retirement Plans appeared first on TheCoinrise.com .
