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US President Donald Trump has signed a new executive order that will open the $8.7 trillion 401(k) retirement fund market to crypto and other alternative assets. 

Signed yesterday, the order instructs federal agencies, including the US Securities and Exchange Commission (SEC) and the Labor Department, to redefine what would be considered a qualified asset under 401(k) rules. 

New Trump Order Opens Up Higher-Risk Investment Options

Until now, 401(k) investors have only been able to build exposure mainly to stocks and bonds, while some funds also offer cash options or the choice to invest in heavily-traded commodities such as gold. 

That’s due to the fact that US employers are restricted by the Employee Retirement Income Security Act of 1974 to only offer investment options that are in the interest of employees, not Wall Street.

With the new order, those restrictions are likely to ease, giving investors a much broader range of options. Along with crypto, investors will also be able to buy into the private equity and real estate markets. 

The White House expects the changes to be implemented in the next few months, depending on how much time it takes for the federal agencies to determine what rules need to be changed and to implement these potential changes.

Trump Administration Ramps Up Pro-Crypto Efforts

Trump’s executive is the latest development in his administration’s push to make the US the crypto capital of the world.

Earlier this year, Trump signed the GENIUS Act, a key stablecoin bill that establishes the requirements for issuers in the US.

The SEC, under new Chair Paul Atkins, also unveiled “Project Crypto,” which seeks to act on the recommendations from the President’s crypto working group. 

The US Commodity Futures Trading Commission (CFTC), also acting on the working group’s recommendations, has started exploring spot crypto trading on futures exchanges as part of its “crypto sprint” initiative. 

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