Financial Times: Trump Prepares Executive Order on Crypto Investments in Pension Funds

US President Donald Trump is preparing to sign an executive order that will open access to cryptocurrency investments within the 401(k) retirement savings program. The document could be released as early as this week, according to Financial Times, citing three informed sources.

US President Donald Trump is preparing to sign an executive order that will open access to cryptocurrency investments within the 401(k) retirement savings program. The document could be released as early as this week, according to Financial Times, citing three informed sources.

The new investment opportunities will cover a wide range of alternative assets. In addition to digital currencies, Americans will be able to allocate retirement savings into precious metals, infrastructure project funds, and private lending. This approach will drastically expand the traditional list of instruments, which has so far been limited to stocks and bonds.

Regulators to Receive Clear Guidance

The order will instruct Washington’s regulatory agencies to explore optimal ways to integrate cryptocurrencies into 401(k) plans. Agencies will be tasked with identifying and eliminating remaining barriers to implementing this initiative.

However, White House spokesman Kush Desai told Cointelegraph that no decisions should be considered official until they come directly from President Trump.

“President Trump is committed to restoring prosperity for everyday Americans and safeguarding their financial future. However, no decisions should be treated as official unless they come directly from President Trump,” the administration’s spokesperson said.

A Shift Away From Biden-Era Policy

This initiative continues the trend of liberalizing pension investments. In May last year, the US Department of Labor repealed Biden-era guidelines that restricted the inclusion of cryptocurrencies in 401(k) plans. The Democratic administration treated digital assets cautiously, preferring traditional financial instruments.

Financial firm Fidelity, which manages $5.9 trillion in assets, launched a new retirement account in April allowing Americans to invest in cryptocurrencies. Such moves indicate that major market players are ready to expand investment opportunities.

The Scale of the Pension Market

The 401(k) plan is a retirement savings program offered by many US employers. Employees can allocate a portion of their salary into investment funds before taxes. Investments are usually concentrated in mutual funds, ETFs, stocks, and bonds.

As of September 30, 2024, the 401(k) market held $8.9 trillion in assets across more than 715,000 plans.

International Practice

The trend of adding cryptocurrencies to pension portfolios is spreading beyond the US. In November last year, UK pension consultant Cartwright reported that an unnamed scheme allocated 3% of its pension fund assets into Bitcoin.

Japan’s Government Pension Investment Fund also considered Bitcoin as a potential diversification tool in March last year.

Editor: Godfrid Brower

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