Crypto in 401(k) Plans via Trump Order and SEC Reforms

Former President Donald Trump plans an executive order directing the Labor Department and SEC to revise rules to allow alternative assets— including crypto—in 401(k) retirement plans. This 401(k) crypto initiative could open doors to Bitcoin, Ethereum and other digital assets alongside traditional funds. SEC Chair Paul Atkins has signaled support for responsible disclosure and investor education, stressing that clear digital asset reporting is critical. He also unveiled plans for an “innovation exemption” within SEC regulations to facilitate tokenization and new trading models. Major asset managers like BlackRock and Vanguard are poised to launch approved crypto 401(k) products once rules are finalized. While advisors warn of volatility and liquidity risks, traders view these moves as bullish for long-term crypto demand. As Washington debates detailed rule-making, 401(k) participants may soon gain tax-advantaged access to digital assets, potentially driving sustained inflows into the crypto market.