Key Takeaways
- President Trump is considering an executive order to allow bitcoin in 401(k) plans.
- The U.S. Labor Department recently rescinded restrictions on bitcoin in retirement accounts.
- Other countries and U.S. states are also exploring bitcoin for retirement funds.
President Donald Trump is reportedly considering signing an executive order that could allow American 401(k) retirement plans to broaden their investment options to include alternative assets such as bitcoin.
According to the Financial Times, sources briefed on the matter expect the order could be signed this week.
Executive order would direct regulatory review
If enacted, the executive order would instruct federal agencies in Washington to explore ways for 401(k) plans to invest in digital assets, metals, infrastructure funds, and private loans.
The review would also address any remaining regulatory barriers to enabling such investments.
This marks a potential shift from current practice, where 401(k) plans are typically limited to mutual funds, stocks, exchange-traded funds, and bonds.
As of September 2024, the 401(k) market held $8.9 trillion in assets across more than 715,000 plans.
White House response and recent regulatory changes
Despite these reports, White House spokesman Kush Desai cautioned that nothing is official until directly confirmed by President Trump. Desai stated:
“No decisions should be deemed official, however, unless they come from President Trump himself.”
In May, the U.S. Labor Department rescinded Biden-era guidance that had restricted the inclusion of bitcoin in retirement plans, signaling a shift in regulatory posture.
Financial services giant Fidelity, which manages $5.9 trillion in assets, also recently introduced retirement accounts allowing bitcoin investments.
International interest in bitcoin retirement allocations
Globally, there is growing interest in including bitcoin in pension and retirement portfolios.
In the United Kingdom, a pension scheme reportedly allocated 3% of its fund to bitcoin in late 2024.
Meanwhile, Japan’s Government Pension Investment Fund has considered adding bitcoin as a diversification tool.
