US President Donald Trump has officially signed his new executive order opening the $12.5 trillion 401(k) retirement market to crypto investments. The legislation aims to allow private equity, real estate, and other alternative assets, including crypto, to be a part of the 401(k) plan. The executive order helps to tap an approximate $12.5 trillion held in retirement accounts across the US.
“The Order instructs the Secretary of Labor to clarify the Department of Labor’s position on alternative assets and the appropriate fiduciary process associated with offering asset allocation funds containing investments in alternative assets,” a White House press release reads. The order also “directs the Securities and Exchange Commission to facilitate access to alternative assets for participant-directed defined-contribution retirement savings plans by revising applicable regulations and guidance.”
Private allocation of crypto in 401(k) retirement plans will boost the digital assets market, making it turn bullish. Trump promised to make the United States the “crypto capital of the world,” emphasizing the need to embrace digital assets to drive economic growth and technological leadership. The latest executive order certainly pushes the US in that direction.
US pensions will experience a rapid change with the induction of crypto in the 401(k) retirement plan signed by Trump. Opting for the new options will untap greater potential, as the upside value could be tremendous. Allocating them now and waiting till pensions go live could make the funds soar over the years and decades. The US is banking on the recent financial shift with crypto-friendly policies that can benefit Americans.