Trump’s Executive Order Paves Way for Bitcoin and Crypto Investment in 401(k) Plans: A Leap Forward for Cryptocurrency Adoption
The cryptocurrency market experienced a significant surge on Thursday, fueled by anticipation that digital assets, including bitcoin, could soon become investment options within 401(k) retirement plans.
According to confirmed reports, President Trump is set to sign an executive order enabling 401(k) accounts to invest in alternative assets, such as private equity, real estate, and digital assets.
In response, the price of bitcoin climbed approximately 1%, reclaiming the $116,000 level for the first time since July 31. Ether also rose more than 4%, returning to a one-week high.
Crypto-linked stocks also experienced growth in premarket trading. Coinbase gained 2%, Circle advanced over 3%, and Bitmine Immersion rose 4%. Sharplink Gaming rallied 7%.
The potential widespread inclusion of bitcoin in U.S. retirement accounts has long been considered a significant milestone for crypto adoption, potentially establishing it as a staple within the country’s financial infrastructure, increasing access, and promoting longer-term investments in the asset. The current retirement market is valued at $43 trillion.
Michael Novogratz, CEO of Galaxy, noted during an interview with CNBC’s “Squawk Box” that this development represents a broadening of opportunities to invest in crypto, potentially attracting more people into the market. He further stated that when it becomes commonplace, more individuals will be drawn into the ecosystem, especially if they can access these investment options through established providers like Fidelity or T. Rowe Price.
While Fidelity has taken an initial step towards creating options for bitcoin allocation within its 401(k)s, employer adoption of this offering has been relatively low to date.
The executive order, initially reported by Bloomberg, marks another effort under the Trump administration aimed at positioning the U.S. as a global leader in cryptocurrency. In July, the President signed stablecoin legislation known as the GENIUS Act, marking the first official U.S. law pertaining to crypto.