U.S. President Donald Trump has signed an executive order to facilitate cryptocurrency investments in 401(k) retirement plans, potentially increasing the flow of funds into this market.

The order now permits greater flexibility in investment options for retirement fund managers, which includes not only cryptocurrencies but also private equity investments. As a result, this move is anticipated to enhance crypto prices and foster its integration into the traditional financial system.

Key Highlights:

• Trump directs the Department of Labor and the Securities and Exchange Commission to amend existing regulations regarding retirement funds.
• Additionally, he has initiated measures to prevent unjust banking practices affecting crypto investments.

In particular, this order means that fiduciaries will now have clearer guidelines to include crypto within retirement plans, potentially attracting traditional wealth managers who have previously hesitated due to regulatory uncertainties.

“This order isn’t about the government saying ‘crypto belongs in 401(k)s.’ It’s about the government stepping back and allowing individuals to make informed choices,” stated Matt Hougan, Chief Investment Officer at Bitwise.

This executive act follows various positive momentum in crypto markets, indicating a maturation process that has seen investments in digital assets become more mainstream.

In addition to the crypto investment rule change, Trump also signed orders addressing policies that would prevent financial institutions from discriminating based on political or religious beliefs, promoting fair access to banking for all citizens.