- President Donald Trump signed an executive order on August 7 allowing Americans to use 401(k) retirement accounts to invest in cryptocurrencies and other alternative assets.
- The decision could increase access to digital assets for millions of retirement investors, according to industry analysts.
- Experts believe retirement capital entering cryptocurrency markets may legitimize the asset class and bring long-term growth, though adoption may start slowly.
- The order instructs agencies like the SEC and IRS to adjust regulations for this new approach, which could delay immediate implementation.
- Total U.S. defined contribution retirement plans, including 401(k)s and 403(b)s, hold $12.2 trillion in assets, potentially opening large new investment pools to digital assets.
On August 7, President Donald Trump signed an executive order allowing Americans to invest in cryptocurrencies, real estate, and private equity using their 401(k) retirement accounts. The move aims to expand investment options for retirement plan holders across the United States.
The order directs agencies such as the SEC and IRS to update their rules, making it possible for retirement investors to include digital assets in their portfolios. According to Joe DiPasquale, CEO of BitBull Capital, this development represents “a major step toward mainstream adoption” and provides “millions of Americans potential access to digital assets through familiar retirement vehicles.”
Tim Enneking, managing partner at Psalion, explained the possible effects on the market. “Trump’s addition of crypto, real estate and PE could be massive for all three sectors, but is almost certain to be so for digital assets,” Enneking stated. He noted the large pool of U.S. retirement capital and its impact on market legitimacy. However, Enneking pointed out that implementation will take time because agencies must adjust regulations and retirement investors typically make conservative choices.
According to DiPasquale, the early adoption may be slow as plan providers proceed cautiously and consider their fiduciary responsibilities. He suggested that, if digital assets like Bitcoin and Ethereum are included alongside traditional alternatives such as Gold, significant long-term capital could enter the crypto market. DiPasquale also said this demand might reduce volatility and broaden the investor base.
Brian Huang, cofounder of fintech firm Glider, highlighted the broader significance of the order: “This executive order sets the precedent for any digital asset in a 401(k). We’re not just talking about cryptocurrencies; we’re talking about on-chain stocks, RWAs, and tokenized private equity.” Huang stated that he expects this move to lead to more direct ownership of assets and fewer intermediaries.
Tom Bruni, editor-in-chief and VP of community at Stocktwits, expects the order to accelerate the role of cryptocurrencies in retail investment portfolios. Citing figures from the Investment Company Institute, Bruni noted that U.S. defined contribution plans, including 401(k)s and 403(b)s, held $12.2 trillion at the end of Q1 2025. He explained that this sum is about three-quarters of the U.S. individual retirement account market.
Bruni said, “This move will open up trillions more in capital to the crypto market, both directly and indirectly, and offer ‘stickier’ capital flows as most investors tend to take a long-term, dollar-cost-averaging approach to investing via their employer-sponsored retirement accounts.” He added that the executive order could push more account providers to allow cryptocurrency access to remain competitive.
The executive order is expected to gradually reshape the retirement investment landscape, providing more Americans with access to a broader set of asset classes through their existing 401(k) accounts.
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