Trump Opens 401(k) Retirement Plans to Crypto Assets
President Trump issued an executive order directing the US Labor Department and SEC to ease crypto regulation and clarify fiduciary duties for 401(k) and other defined-contribution retirement plans. This move allows digital assets like Bitcoin and Ethereum to join the $12.5 trillion retirement market alongside private equity and real estate. Major asset managers, including BlackRock, Fidelity, Franklin Templeton and Vanguard, are preparing crypto offerings and investor education. Industry groups such as Bitwise and the Managed Funds Association praised the change. Markets rallied: BTC gained over 4% and ETH rose 7%, while crypto-related stocks also jumped. Critics warn of higher fees, limited liquidity, custody risks and volatility. Traders should watch upcoming Labor Department guidance, SEC rules and token qualification criteria for market catalysts. This shift could unlock significant institutional capital and reshape long-term crypto adoption in retirement planning.
Bullish
In the short term, markets reacted positively to the executive order, with Bitcoin rising over 4% and Ethereum climbing 7%. This immediate rally reflects trader optimism about upcoming Labor Department and SEC guidance. Over the long term, allowing crypto into $12.5 trillion defined-contribution plans could unlock substantial institutional capital. Major asset managers are already preparing products, which should boost liquidity and adoption. While critics highlight fees, custody and volatility risks, the overall effect is expected to drive sustained inflows and regulatory clarity, supporting a bullish outlook for crypto prices.