Trump’s Executive Order Sparks Push for Crypto in 401(k) Retirement Plans
Paul Atkins, the chair of the Securities and Exchange Commission, has been urged by US politicians to expedite the executive order. Cryptocurrency investments in US 401(k) retirement plans would be made possible by this order. Atkins was urged to provide swift assistance to the Secretary of Labor, according to a letter sent Monday by nine congressmen, including House Financial Services Committee Chairman French Hill and Subcommittee on Capital Markets Chairman Ann Wagner. Additionally, they asked him to modify its existing rules and guidelines as needed.
They added that the SEC was directed to increase the accessibility of alternative assets, such as cryptocurrency, in participant-directed retirement plans in accordance with President Donald Trump’s August executive order on “Democratizing Access to Alternative Assets for 401(k) Investors.” The rules pertaining to qualified purchasers and accredited investors were to be taken into consideration.
We are hopeful that such actions will help the 90 million Americans that are currently restricted from investing in alternative assets to secure a dignified, comfortable retirement,
the nine lawmakers
US Lawmakers Push for Broader Crypto Access in Retirement Accounts
This action follows the Ministry of Labor‘s May reversal of its anti-crypto guidelines. Fiduciaries were cautioned by that guidance to be extremely cautious when incorporating cryptocurrency into retirement accounts.
Every American preparing for retirement should have access to funds that include investments in alternative assets when the relevant plan fiduciary determines that such access provides an appropriate opportunity… to enhance the net risk-adjusted returns,
the lawmakers
Trump’s EO Could Unlock $93B Crypto Inflows Into US 401(k) Plans
By opening up the $9.3 trillion US 401(k) retirement market to cryptocurrency, Trump‘s EO will encourage further investments in cryptocurrency exchange-traded products. Additionally, it would establish cryptocurrency as a viable long-term investment plan. $93 billion in inflows could result from even a 1% cryptocurrency allocation in the $9.3 trillion held in 401(k) plans. Compared to the $60.6 billion that has poured into the spot Bitcoin exchange-traded funds since their inception in January 2024, this would be a significant amount more.
For more up-to-date crypto news, you can follow Crypto Data Space.
