A new executive order could funnel billions from American retirement accounts into Bitcoin and other digital assets, a massive win for the crypto industry and a huge new risk for your savings.
President Donald Trump, who has rebranded himself as one of the world’s most powerful crypto advocates, has just signed an executive order that could reshape Americans’ retirement investing. For the first time, cryptocurrencies can be included in 401(k) plans, the workplace retirement accounts used by roughly 100 million Americans.
According to a White House fact sheet, Trump’s goal is to “give American workers more investment options” in order to boost long-term retirement security. The order directs the Secretary of Labor to review how cryptocurrencies should be classified, regulated, and made available to retirement fund managers.What This Means
A 401(k) is a tax-advantaged retirement savings plan offered by employers. Workers contribute a portion of each paycheck—often matched in part by their employer—which is usually invested in a mix of stocks, bonds, and mutual funds. Until now, federal guidance effectively warned retirement plan administrators to stay away from crypto, citing high volatility, fraud risks, and a lack of regulation. That caution dates back to March 2022, when the Labor Department issued guidance telling wealth managers to “exercise extreme care” before offering crypto in 401(k) menus. The Trump administration withdrew that guidance in May, but Thursday’s executive order goes a step further.
