Donald Trump is poised to sign an executive order that would broaden the investment options available to Americans in their 401(k)s, permitting them to include cryptocurrencies like Bitcoin and Ethereum, as well as physical gold and private market assets such as private equity or hedge funds. Currently, most retirement plans are limited to mutual funds, index funds, and ETFs, but this initiative aims to enhance investor flexibility.

What’s Changing and Why It Matters

The order will instruct the Labor Department and the SEC to revise regulations overseeing retirement account management. The objective is to ease restrictions on financial firms looking to incorporate alternative assets into retirement plans, eliminating barriers that have previously deterred employers from offering crypto investments.

“Breaking: Trump plans to sign an executive order that allows 401k retirement plans to invest in crypto!” - @CryptoTea_ (July 17, 2025)

The Biden administration had previously cautioned that digital assets could pose risks to retirement savings.

With roughly $9 trillion in 401(k)s and $12 trillion across all defined contribution plans, this represents a substantial financial resource. Investment firms, including BlackRock and Vanguard, are ready to introduce new products promising diverse returns beyond traditional stocks and bonds.

Crypto in Retirement Accounts?

Trump has consistently endorsed cryptocurrencies, having commended Bitcoin and rallied support for digital assets throughout his campaigning. His latest initiatives signal a stark deviation from the cautious approach taken by the Biden administration regarding crypto in retirement accounts.

This movement suggests a significant shift in regulatory guidance concerning cryptocurrency investments within retirement plans.

The Risks Are Real

Nonetheless, the transformation won’t occur instantly. Even with the executive order imminent, many firms are likely to take a cautious approach, waiting for regulators to finalize rules and legal safeguards. Economic advisors are already voicing concerns due to crypto’s volatility and the illiquidity associated with private equity investments. These investment avenues are generally perceived as unsuitable for stable, long-term retirement savings. Therefore, experts urge investors to proceed with caution and avoid excessive exposure.

What Comes Next

This impending order is expected to ignite a new debate among lawmakers and financial experts, some advocating for increased freedom in retirement investments while others caution against the potential for unwarranted risks. Attention now turns to Washington, where if Trump signs the order and regulators comply, retirement plans could undergo significant transformations, contingent upon the careful implementation of these new investment options that aim to enhance future security for savers.