Trump To Sign Order Allowing Crypto in 401(k) Retirement Plans

US President Donald TRUMP is set to sign an executive order on Thursday that will permit the inclusion of cryptocurrencies and other alternative assets in 401(k) retirement plans. The move aims to unlock approximately $12.5 trillion held in retirement accounts across the US, potentially reshaping the digital assets market.

The order directs the US Labor Department to reassess guidance on alternative investments, including private equity, real estate, and cryptocurrencies. These plans will fall under the Employee Retirement Income Security Act of 1974, according to Bloomberg's latest report. Private allocations of crypto in 401(k) plans could inject significant liquidity into the market, driving bullish sentiment.

The Labor Department will also clarify the Federal government's stance on private crypto allocations in retirement plans. This development follows Trump's 'Crypto Week' at the WHITE House in early August, where he signed the Genesis Act, the first Federal law regulating stablecoins pegged 1:1 to the US dollar.