President Donald Trump is set to sign an executive order Thursday that will direct the U.S. Labor Department to pave the way for bitcoin and private equity investments within 401(k) retirement plans.
Order targets regulatory changes
The order instructs Labor Secretary Lori Chavez-DeRemer to revisit Employee Retirement Income Security Act (ERISA) guidance and coordinate with agencies such as the Treasury Department and Securities and Exchange Commission (SEC).
The SEC is specifically asked to help make alternative assets, including bitcoin, more accessible to defined-contribution account holders.
Impact on retirement plans
The mandate addresses approximately $12.5 trillion held in 401(k) accounts in the U.S., potentially granting mainstream savers direct exposure to bitcoin exchange-traded funds and other digital asset products.
The executive order aims to clarify how plan fiduciaries can safely include these assets while maintaining compliance.
Policy shift from previous administration
This move follows the Labor Department’s May withdrawal of Biden-era guidance that discouraged bitcoin in retirement accounts.
The agency previously accused former officials of “placing a thumb on the scale” against digital assets.
The new order represents the administration’s most aggressive step to date in integrating bitcoin into the retirement policy landscape.
Industry demand and next steps
Industry players, including Fidelity, have already begun allowing workplace bitcoin investment options, signaling substantial demand.
However, plan sponsors are expected to continue evaluating the risks associated with volatility, custody, and valuation before broadly adopting bitcoin in 401(k)s.
