Donald Trump Signs Executive Order Allowing Cryptocurrencies in 401(k) Retirement Plans
In a significant move for the cryptocurrency industry and retirement planning, former U.S. President Donald Trump signed an executive order on August 7, 2025, enabling cryptocurrencies to be included as investment options within 401(k) retirement plans. This landmark directive aims to broaden the range of allowable investments for retirement accounts, potentially opening the doors for billions of dollars to enter the digital asset space.
Expanding Investment Options for Retirement Accounts
The executive order instructs the Department of Labor (DOL) and the Securities and Exchange Commission (SEC) to engage in rulemaking processes to review and revise existing guidance concerning investments in retirement accounts. Until recently, although not outright prohibited, cryptocurrencies were subject to stringent cautionary guidance issued by the DOL, which urged fiduciaries to exercise extreme care before including crypto assets in 401(k) investment menus due to their volatility and risk.
However, this guidance was fully rescinded in May 2025, indicating a regulatory shift towards greater acceptance of digital assets. Now, Trump’s order directs the Department of Labor to issue new guidance that categorizes cryptocurrencies alongside traditional alternative assets such as private equity and real estate. This paradigm could encourage retirement plan managers and wealth advisors—some of whom have been hesitant to embrace crypto—to reconsider including cryptocurrencies or cryptocurrency-related exchange-traded funds (ETFs) in retirement portfolios.
Potential Impact on Crypto Markets and Investors
The ability to hold cryptocurrencies within tax-advantaged retirement plans could result in a substantial inflow of institutional and retail money into the crypto market. This integration is expected to boost crypto prices further and enhance the legitimization of digital assets within the broader financial ecosystem.
Matt Hougan, Chief Investment Officer at Bitwise, remarked that the order “isn’t about the government saying ‘crypto belongs in 401(k)s.’ It’s about the government getting out of the way and letting people make their own decisions.” The order reflects an emphasis on participant choice rather than government prescription.
Bitcoin (BTC), for instance, has experienced a strong run in 2025, reaching prices around $117,000, and has posted a 26% year-to-date gain. Its volatility has also diminished, reaching levels unseen since 2023, signaling a market maturation that may make it more palatable for conservative retirement investors.
Preference for ETFs Among Retirement Accounts
Considering the conservative nature of retirement investments, many financial managers might prefer offering exposure to cryptocurrencies via regulated ETFs rather than direct crypto holdings. BlackRock’s iShares Bitcoin Trust (IBIT), launched in January 2024, is an example of such a financial vehicle and currently manages over $85 billion in bitcoin assets.
Jeffrey Hirsch, CEO of Hirsch Holdings and editor-in-chief of Stock Trader’s Almanac, shared, “I already trade BTC ETFs in my IRA. I think BTC ETFs are fine for retirement accounts. But straight coin seems too risky and would be better suited to non-retirement accounts.”
Additional Executive Order Targeting Debanking
Alongside the crypto-related order, Trump also signed an executive order addressing the practice of "debanking"—when financial institutions restrict or deny services based on political, religious, or lawful business activities. This order calls on federal banking regulators, the Small Business Administration, and the Treasury Department to eliminate policies that use “reputation risk” or similar concepts to justify such restrictions within six months.
While the order’s text does not explicitly mention cryptocurrencies, the White House fact sheet highlighted that the digital assets industry has been a notable target of unfair debanking efforts, underscoring concerns within the crypto community regarding access to banking services.
Conclusion
Donald Trump’s executive order represents a pivotal step toward integrating cryptocurrencies into mainstream retirement investing. By directing regulatory agencies to reassess rules and guidance, it signals a new era where digital assets can coexist with traditional financial instruments in retirement portfolios. This development not only validates cryptocurrencies’ growing role in financial markets but also offers investors innovative opportunities to diversify and potentially enhance their retirement savings.
Helene Braun and Nikhilesh De contributed to this report. Helene Braun is a New York-based markets reporter at CoinDesk, specializing in Wall Street and crypto markets. Nikhilesh De serves as CoinDesk’s managing editor for global policy and regulation.