Trump Authorizes Cryptocurrencies and Private Equity in 401(k) Plans

• Cryptocurrencies May Be Integrated into 401(k) Retirement Accounts
• Executive order aims to loosen Department of Labor rules
• Focus on digital assets and private equity for retirement

US President Donald Trump will sign this Thursday An executive order authorizing the Department of Labor to allow the use of cryptocurrencies, private equity, and other alternative assets in 401(k) retirement plans. The measure also involves the Securities and Exchange Commission (SEC), which is expected to collaborate to expand access to these financial products.

The order directs Secretary of Labor Lori Chavez-DeRemer to review the Employee Retirement Income Security Act (ERISA) guidelines. The goal is to work with other federal agencies, such as the Treasury Department, to implement regulatory changes that would allow the inclusion of cryptoassets in retirement accounts.

The SEC has been directed to consider ways to facilitate 401(k) investors' access to assets such as Bitcoin ETFs and other cryptocurrency-related products. The new guidance could directly impact the approximately $12,5 trillion currently allocated to defined contribution plans.

This initiative marks the current administration's most decisive move toward integrating digital assets into pension policy. In May, the Department of Labor had already reversed a previous administration directive that limited access to crypto in 401(k) plans, criticizing the previous approach for favoring restrictions without sound justification.

Companies in the sector have been pushing for changes in this regard. Fidelity, for example, was the first to allow bitcoin in corporate retirement plans, back in 2022. This new measure meets growing demand, despite challenges related to the volatility, valuation, and custody of digital assets.

With the signing of the decree, retirement funds are expected to begin evaluating the inclusion of cryptocurrencies among the options offered to participants, provided they meet security and compliance requirements. The decision expands the institutional reach of the crypto sector in the United States, with official backing from the federal government.