US President Donald Trump is said to be preparing to sign an executive order that may open the door for investments in alternative assets beyond traditional stocks and bonds, potentially including cryptocurrencies.
This executive order could come as soon as this week. Reports indicate that three individuals familiar with the matter discussed the upcoming plans on Thursday.
The revised 401(k) investment options might encompass a variety of assets, like infrastructure projects, corporate buyouts, digital currencies, metals, and funds focused on private loans.
According to the Financial Times, the executive order will instruct regulators in Washington to look into the possibilities of adding cryptocurrencies to 401(k) plans and to identify any barriers that remain.
Trump will have the final decision
White House spokesperson Kush Desai clarified to Cointelegraph that the plan isn’t official until it’s announced by Trump himself.
“President Trump is dedicated to enhancing the financial well-being of everyday Americans and ensuring the economy’s future,” he noted, adding, “However, the decision shouldn’t be regarded as official unless it comes from President Trump himself.”
A few months back, the U.S. Labor Bureau reversed guidance that was issued during the Biden administration, which had limited the inclusion of cryptocurrencies in 401(k) retirement plans.
In April, it was reported that Fidelity, a company managing $5.9 trillion in assets, had launched a retirement account that offers Americans a chance to invest in crypto.
Standard 401(k) primarily involves stocks and bonds
A 401(k) is a retirement savings plan commonly offered by employers in the US, enabling employees to set aside a portion of their earnings for investment before taxes are applied.
Investments typically center around mutual funds, ETFs, stocks, and bonds based on the specific plan. As of September 30, 2024, the 401(k) market had amassed an asset value of $8.9 trillion across more than 715,000 plans.
In March, North Carolina lawmakers already put forward bills allowing state treasurers to designate up to 5% of various state retirement funds for cryptocurrency investments, such as Bitcoin (BTC).
Other countries exploring crypto for retirement funds
Last November, a UK pension expert noted that a certain scheme allocated 3% of pension funds to Bitcoin.
Additionally, Japan’s pension investment fund showed interest in Bitcoin as a diversifying asset as of last March.
