Trump Signs Executive Order Allowing Crypto Investments in 401(k) Plans
U.S. President Donald Trump has signed an executive order enabling crypto investments in 401(k) retirement plans, potentially increasing capital inflow into cryptocurrencies. Key points include:
- The order also permits private equity investments, broadening the investment scope for retirement plan providers.
- Previously, guidance from the Department of Labor advised caution on adding cryptocurrencies to retirement plans; this guidance was rescinded in May.
- The order mandates new guidance from the DOL, categorizing cryptocurrencies alongside other assets.
- This may prompt wealth managers to invest in exchange-traded funds (ETFs) holding bitcoin and other digital assets.
- Bitcoin is trading at $117,351, up 26% year-to-date, with reduced volatility indicating market maturation.
- Experts suggest that while spot cryptocurrencies can be added to retirement plans, many managers might prefer ETFs due to risk considerations.
- BlackRock’s iShares Bitcoin Trust (IBIT) has surpassed $85 billion in assets since its January 2024 launch.
Debanking Order
Trump also signed a debanking order aimed at preventing financial institutions from restricting services based on political or religious beliefs, ensuring fair banking access. Although the order does not specifically mention crypto, it addresses issues affecting the digital assets industry regarding unfair debanking initiatives.