Trump’s 401(k) Crypto Revolution: Bitcoin Soars as Retirement Rules Get Disrupted

Washington shakes as legacy finance braces for impact—the Trump administration just greenlit crypto in retirement accounts, and Bitcoin's already pricing in the chaos.

The retirement gamble Wall Street didn't see coming

Forget boring bonds and diluted ETFs—now your grandma's 401(k) can moon with memecoins. Pension funds are scrambling to update their 'acceptable risk' playbooks.

BTC pumps on policy pivot

No surprise here: Bitcoin jumped 12% in 3 hours post-announcement. Traders are betting this unlocks a $9T captive market—whether the SEC likes it or not.

The fine print hurts traditionalists

Brokerages face brutal operational overhauls to custody digital assets. Meanwhile, crypto-native firms are snickering—their infrastructure's been ready for years.

One hedge fund manager groaned: 'Now we'll have to explain shitcoin volatility to retirees instead of golfing.' The future's here—and it's uncomfortably decentralized.

What to know

• President Trump is expected to sign an executive order allowing crypto, private equity, and real estate investments in 401(k) retirement plans.

• Bitcoin surged nearly $800 on the news, reflecting renewed market enthusiasm and increased derivatives activity.

• The move follows previous concerns from the Department of Labor over insufficient oversight of crypto in retirement accounts.

U.S. president Donald TRUMP is set to sign a an executive order that aims to allow cryptocurrency, private equity and real estate in 401(k)s, according to Bloomberg.

While the details of the directive remain under wraps, sources familiar with the matter told Bloomberg that the order WOULD direct the Department of Labor to ease fiduciary restrictions that currently deter plan administrators from offering such products.

Bitcoin rose from $114,900 to $15,670 within the hour of the announcement, as traders interpreted the news as bullish for long-term crypto adoption.

Though still shy of the psychological $120,000 level it briefly touched last month, the rally reignited speculative momentum, with derivatives markets also showing a jump in open interest and volume.

There were concerns about including cryptocurrencies in retirement plans at the tail end of 2024, with The Department of Labor reportedly "lacking the data" to oversee the growing prevalence of crypto holdings.