TLDR
- Trump signs executive order allowing crypto investments in 401(k) retirement plans worth $12.5 trillion
- Order directs Labor Department and SEC to reevaluate restrictions on alternative assets including digital assets
- Previous Labor Department guidance urging “extreme caution” on crypto in 401(k)s was rescinded in May 2024
- Bitcoin currently trading at $117,351, up 26% year-to-date with decreasing volatility
- Separate order addresses debanking issues affecting digital asset companies
President Donald Trump signed an executive order Thursday allowing cryptocurrency investments in 401(k) retirement plans. The move opens access to digital assets for millions of American workers saving for retirement.
BREAKING:
🇺🇸 PRESIDENT TRUMP SIGNS AN EXECUTIVE ORDER ALLOWING
$12.5 TRILLION 401(K)S TO BUY BITCOIN AND OTHER CRYPTOCURRENCIES.THIS IS GIGA BULLISH FOR MARKETS 🔥 pic.twitter.com/g9G9M620bY
— Ash Crypto (@Ashcryptoreal) August 7, 2025
The order directs the Department of Labor to reevaluate current restrictions on alternative assets in retirement plans. This includes cryptocurrencies, private equity, and real estate investments that were previously limited.
A White House Press Office spokesperson confirmed the order to reporters Thursday. The directive instructs the Labor Secretary to clarify the department’s position on alternative assets and provide new guidance for fiduciaries.
The 401(k) market represents $12.5 trillion in retirement savings across the United States. Crypto companies have sought access to this market to reach more retail investors.
Previous Restrictions Lifted
The Labor Department previously issued guidance in 2022 urging fiduciaries to exercise “extreme care” before adding crypto to retirement plans. This guidance created barriers for plan administrators considering digital asset investments.
In May 2024, the Labor Department fully rescinded this cautionary guidance. The action cleared the way for Thursday’s executive order expanding investment options.
The new order puts cryptocurrencies in the same category as other investment assets. This change could encourage wealth managers who previously avoided crypto due to regulatory uncertainty.
Bitcoin is currently trading at $117,351 and has gained 26% year-to-date. The cryptocurrency has also experienced reduced volatility compared to previous years, reaching levels not seen since 2023.
Implementation Process
The executive order requires inter-agency coordination between the Treasury and Securities and Exchange Commission. These agencies will explore rule changes needed to support alternative investments in retirement products.
SEC Chair Paul Atkins emphasized the importance of education about crypto investment risks. He stated that disclosure remains key so investors understand what they are purchasing.
Matt Hougan, chief investment officer at Bitwise, described the order as removing government barriers. He said it allows people to make their own investment decisions rather than having the government dictate choices.
Many retirement plan managers may choose exchange-traded funds over direct crypto exposure. ETFs provide a more familiar investment vehicle for risk-averse retirement portfolios.
BlackRock’s iShares Bitcoin Trust has accumulated over $85 billion in assets since launching in January 2024. The spot bitcoin ETFs have seen unprecedented investor interest and capital inflows.
Debanking Protections
Trump also signed a separate executive order addressing debanking practices affecting crypto companies. The order directs federal banking regulators to prevent financial institutions from denying services based on political beliefs or lawful business activities.
The debanking order requires regulators to remove policies based on “reputation risk” within six months. These policies have been used to restrict banking services for digital asset businesses.
While the debanking order does not specifically mention crypto, the White House fact sheet noted that digital asset companies have faced unfair banking restrictions. The order aims to ensure fair access to banking services for all Americans.
The Labor Department will now begin the rulemaking process to implement the retirement plan changes.
