Bitcoin Surges as President Trump Prepares to Sign Executive Order Enabling Cryptocurrencies in 401(k) Plans
August 7, 2025 — CNBC Report by Tanaya Macheel
The cryptocurrency market soared on Thursday amid growing anticipation that Bitcoin and other digital assets could soon become eligible investments within 401(k) retirement plans. The excitement stems from news that President Donald Trump is poised to sign an executive order permitting 401(k) accounts to allocate funds toward alternative assets, including private equity, real estate, and notably, digital currencies.
Bitcoin Climbs Past $116,000
Following the confirmation of the executive order, Bitcoin’s price rose approximately 1%, reclaiming the $116,000 level—a peak not seen since July 31. Ether, the second-largest cryptocurrency, experienced an even stronger gain, surging nearly 4% to reach a one-week high. Crypto-linked stocks saw modest gains, with Coinbase and Galaxy Digital increasing by 1.5% and ether treasury stock Bitmine Immersion rising close to 4%, though later trading met some resistance as the broader stock market rally cooled.
Potential Revolution for Retirement Accounts
The inclusion of Bitcoin and other cryptocurrencies in 401(k) retirement plans has long been regarded as a pivotal milestone for mainstream crypto adoption. If widely embraced, it would integrate digital assets into the core of U.S. financial infrastructure, broadening access for millions of investors and encouraging long-term holdings within retirement portfolios.
The U.S. retirement market currently holds assets valued at approximately $43 trillion, with 401(k) plans accounting for nearly $9 trillion of that total. In comparison, the current cryptocurrency market capitalization stands close to $4 trillion. The potential to tap into this vast pool of retirement capital is seen as transformative for the crypto industry.
Michael Novogratz, CEO of Galaxy Digital, explained on CNBC’s Squawk Box, “That’s a monster pool of capital. What we’re seeing is the aperture of being able to buy crypto being widened and widened, more avenues bringing people into the tent. When it becomes commonplace—when you can do it at the place you’ve already been doing business with, if it’s Fidelity or T. Rowe Price or whoever—it just pulls more people into this ecosystem.”
Background and Industry Context
Fidelity Investments made strides in 2022 by becoming the first retirement plan provider to allow investors to include Bitcoin in their 401(k)s, although actual adoption remains limited. Uptake has been constrained by factors including the bear market triggered by rate hikes, persistent regulatory uncertainties from the prior administration, and prevailing investor caution.
This upcoming executive order, first reported by Bloomberg and confirmed by CNBC, marks the latest initiative by the Trump administration to position the United States as the "crypto capital of the world." Notably, in July, President Trump signed the GENIUS Act, the first official U.S. legislation governing stablecoins.
Market Implications
The executive order’s potential to incorporate cryptocurrencies into mainstream retirement accounts could represent a watershed in crypto investing, fostering broader participation and enhancing the legitimacy of digital assets within traditional financial systems. Observers are closely watching how employers and retirement plan administrators respond in the coming months, as their adoption will be critical to realizing the full impact of this policy shift.
Additional Insights
- Experts predict the availability of crypto in 401(k)s may extend investment horizons and draw conservative investors who previously avoided the sector.
- The move aligns with ongoing trends to diversify retirement portfolios by including alternative asset classes.
- Industry insiders foresee increased competition among financial services firms offering crypto-enabled retirement products.
For further updates on the development and analysis of the evolving cryptocurrency landscape, stay tuned to CNBC’s dedicated coverage.
About the Author: Tanaya Macheel covers cryptocurrency markets and trends for CNBC. She reports live on major developments affecting the digital asset space.
© 2025 CNBC LLC. All rights reserved.