Trump order allows 401(k) investors access to crypto assets

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Mikhail Vnuchkov

08.08.2025

Trump order allows 401(k) investors access to crypto assets — White House executive order pushes crypto adoption in retirement plans

A White House fact sheet announced that Donald Trump has signed an executive order allowing 401(k) retirement plan investors to access alternative assets, aiming to boost returns and diversification.

The order directs the Secretary of Labor to revise fiduciary investment guidance for alternative assets within 401(k) plans governed by ERISA and other defined contribution plans.

To support this goal, the Departments of Labor and Treasury, the SEC, and other federal regulators will coordinate consultations to initiate amendments to relevant regulations and guidance.

The SEC is expected to ease access to alternative assets for participant-directed defined contribution retirement plans by reviewing its policies and rules.

“Over 90 million Americans participate in employer-sponsored defined contribution plans, and most of them are currently restricted from investing in alternative assets — unlike wealthy individuals or government pension plans,” the White House stated.

The executive order seeks to broaden access to these assets to ensure a more secure and comfortable retirement for all Americans.

News of the Thursday signing pushed the cryptocurrency market up nearly 2%. At the time of writing, Bitcoin was trading around $117,500 and Ethereum around $3,860. Leading altcoins also posted gains.

From the Moon to Jupiter

Some analysts say Trump’s order may have a greater impact on crypto markets than the approval of spot Bitcoin and Ethereum ETFs.

Currently, 401(k) plans manage around $12 trillion in investments, with roughly $50 billion in new capital added every two weeks.

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“Every two weeks, when most Americans receive paychecks, a portion—typically 1% to 10%—is directed to their 401(k) accounts,” said Tom Dunleavy of Varys Capital.

Currently, these contributions are allocated roughly 60% to stocks and 40% to bonds. If crypto allocation in 401(k) plans reaches even 5% in the coming years, it could mean billions in inflows to the crypto market.

“At 1%, that’s $120 billion in new capital… At 3% it’s $360 billion, and at 5% — $600 billion in new investments,” Dunleavy calculated.

He added that such steady flows would help set a price floor or stable base level for cryptocurrencies. The updated 401(k) directive sets an extraordinary benchmark for crypto’s future — shifting the limit, as he said, “from the Moon to Jupiter.”

As we wrote, Bitcoin price rises 1.74% as Federal Reserve signals potential rate cuts in upcoming meetings

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