US President Donald Trump will sign an executive order opening the door for cryptocurrencies to be included in 401(k) retirement plans, potentially reshaping how Americans invest their savings.

The White House Press Office confirmed to Cointelegraph on Thursday that the order directs the US Labor Department to reevaluate restrictions around alternative assets in defined-contribution plans, including digital assets, private equity and real estate. 

A senior White House official said the order instructs the labor secretary to clarify the department’s stance on alternative assets and provide guidance on fiduciary processes for offering these types of investments in retirement portfolios.

Trump will allow crypto exposure for $12.5 trillion 401(k) market

Once implemented, the order will grant Americans access to digital assets through their 401(k) plans, part of a $12.5 trillion retirement market and a sought-after opportunity for crypto firms aiming to reach more retail investors.

The move would be a significant step forward for the crypto industry, which has long sought broader retail exposure and financial system legitimacy.

Despite institutional investors increasing crypto allocations, everyday savers have been restricted due to fiduciary risk, regulatory uncertainty and volatility concerns. 

The White House official said that Trump’s directive would call for inter-agency coordination with the Treasury and the Securities and Exchange Commission (SEC) to explore rule changes that may support the adoption of alternative investments like crypto in retirement products. 

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Trump seeking retirement plan reform

On July 18, the Financial Times cited anonymous sources saying that the president was eyeing alternative investments like crypto assets for 401(k) retirement plans.

In a previous statement to Cointelegraph, White House spokesman Kush Desai said that nothing should be deemed official unless it comes from Trump.

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

During a Bloomberg interview, SEC Chair Paul Atkins said education on the risks associated with crypto as an investment was crucial.

Atkins said disclosure was key and that people should be made aware of what they are getting into. He added that he’s looking forward to what the president will do. 

Earlier this year, the Labor Department rescinded an earlier guidance for crypto in 401(k) plans. On May 28, the Labor Department revoked a 2022 guidance that urged fiduciaries to be “extremely cautious” when considering crypto for 401(k) retirement plans. 

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