Donald Trump has signed a decree officially allowing cryptocurrencies in 401(k) plans, major retirement plans in the United States, potentially opening up access to billions of dollars for Bitcoin, Ethereum, and other digital assets.
The decree mandates the Department of Labor and SEC to establish a new regulatory framework for cryptos, placing them on par with other asset classes, which could significantly boost crypto ETF adoption.
A second decree prohibits bank regulators from excluding entities for political or ideological reasons, protecting crypto companies from abusive ‘debanking’ based on subjective criteria.
Shaking up the Investment Landscape
A groundbreaking announcement that could change the game for millions of investors. Donald Trump has just signed an executive decree officially allowing cryptocurrencies in 401(k) plans, the most utilized retirement plans in the United States. The result: billions of dollars could soon flow into Bitcoin, Ethereum, and potentially other digital assets.
Integration of Cryptos in 401(k) Plans: Billions of Dollars on Hold
The 401(k) is the Holy Grail of retirement for the American middle class. Nearly 60 million workers regularly contribute part of their salary to it, often supplemented by their employer. In numbers, 401(k) retirement plans represent nearly $9 trillion, almost 4 times the total market capitalization of Bitcoin. Until now, these funds were largely limited to stocks, bonds, or traditional funds. Now, it’s time for ‘alternative assets’: private equity, real estate… and crypto.
Rapid Normalization of Bitcoin ETFs
This state endorsement could change the approach of wealth managers and pension funds. No more legal ambiguity: managers now have a clear framework to offer Bitcoin or ETH to their clients… often through spot ETFs. The impact could be massive. Since their launch in January 2024, these Bitcoin ETFs have been booming. BlackRock’s iShares Bitcoin Trust (IBIT) already manages over $80 billion in BTC. And with government approval, this momentum could accelerate, structurally integrating cryptos into traditional finance.
“It’s not the State imposing Crypto. It’s the State stepping back.”
That’s how Matt Hougan, CIO at Bitwise, welcomed the decree. A major change in stance: the Trump administration is not trying to impose crypto, but to remove regulatory barriers to let citizens decide for themselves.
This decision comes as the crypto market is having one of its best quarters since 2021, further accelerating with the announcement. Bitcoin, trading around $117,000, has gained 26% since January. Its decreasing volatility reflects a growing market maturity and enhances credibility among institutional investors.
Another Trump Bombshell: The Anti-Debanking Order
Another aspect of the day: an anti-debanking decree. It forbids federal bank regulators from pushing financial institutions to cut off access to their services based on political, religious, or legal convictions. This measure addresses numerous complaints from crypto platforms that have been denied banking services, sometimes without justification.
This directive explicitly orders regulators and the U.S. Treasury to remove any mention of ‘reputation risk’ from their evaluation criteria, a lever often used to exclude certain actors… including those in Web3.
