Trump Eyes $8.9T 401(k) Gold Rush—With Crypto as the Shovel

Brace for impact: The $8.9 trillion retirement market just got a crypto makeover. Trump’s latest play? Turning 401(k)s into a backdoor for mainstream Bitcoin adoption.

Wall Street’s worst nightmare—or its juiciest fee generator?

Forget ‘slow and steady’—this is a full-throttle assault on traditional retirement strategies. The move could flood crypto markets with institutional-scale capital overnight. But at what cost? (Cue the obligatory ‘volatility vs. pensions’ pearl-clutching.)

One hedge fund manager yawns: ‘Another day, another attempt to repackage speculation as innovation.’ Meanwhile, Bitcoin maximalists are already drafting ‘I told you so’ tweets.

The real winner? Crypto exchanges—quietly licking their chops at the thought of skimming basis points off America’s retirement dreams.

Executive Order May Pave Way for Crypto in 401(k) Plans

President Donald TRUMP is expected to issue an executive order aimed at expanding the range of assets available in U.S. 401(k) retirement plans, including digital currencies like Bitcoin. According to sources cited by the Financial Times, the order could be signed within the week and would direct federal agencies to assess how retirement accounts can incorporate alternative assets such as crypto, metals, private credit, and infrastructure-focused funds.

The MOVE comes amid growing interest in diversifying retirement portfolios beyond traditional stocks and bonds, which currently dominate 401(k) offerings. As of September 2024, the U.S. 401(k) system managed approximately $8.9 trillion across more than 715,000 plans.

Regulatory Shift Follows Repeal of Biden-Era Crypto Guidance

The Trump administration's reported move follows a regulatory rollback earlier this year. In May, the U.S. Labor Department rescinded a Biden-era policy that discouraged the inclusion of crypto in retirement plans. That policy had raised concerns about the volatility and regulatory uncertainty surrounding digital assets.

With the rollback in place, the path appears more open for federal agencies to explore mechanisms that WOULD enable crypto integration into retirement portfolios. The forthcoming executive order is expected to focus on identifying any remaining legal or operational barriers and proposing solutions to overcome them.

White House Maintains Caution, No Official Confirmation Yet

Despite widespread reports, the WHITE House has not yet formally confirmed the executive order. Spokesperson Kush Desai cautioned against viewing anything as official until directly announced by Trump, saying, 

“President Trump is committed to restoring prosperity for everyday Americans and safeguarding their economic future. No decisions should be deemed official, however, unless they come from President Trump himself.”

Private Sector and State Governments Already Moving Ahead

While federal agencies weigh their approach, private firms and state lawmakers are already testing crypto in retirement strategies. In April, asset management giant Fidelity, which oversees $5.9 trillion, launched a retirement product allowing U.S. citizens to allocate part of their 401(k) savings into cryptocurrencies.

Separately, in March, North Carolina legislators proposed bills enabling the state’s treasurer to invest up to 5% of various public retirement funds into crypto assets.

Global Pension Funds Also Dabbling in Crypto

Internationally, pension funds are beginning to explore crypto allocations as a diversification strategy. In November last year, UK-based pension consultant Cartwright revealed that an undisclosed scheme had allocated 3% of its fund to Bitcoin. Similarly, Japan’s Government Pension Investment Fund disclosed in March that it was studying digital assets as a potential addition to its portfolio.

If signed, Trump’s executive order could mark a pivotal moment in the convergence of retirement finance and digital asset innovation, potentially opening the door for millions of Americans to access crypto through tax-advantaged retirement accounts.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice