The White House has confirmed that President Donald Trump will sign an executive order permitting cryptocurrencies to be included in 401(k) retirement plans, a move that could revolutionize how Americans invest their savings.

What Does the Executive Order Do?

The order, confirmed by the White House Press Office to Cointelegraph, directs the U.S. Department of Labor (DOL) to reassess current restrictions on alternative assets—including cryptocurrencies, private equity, and real estate—within defined-contribution retirement plans.

A senior White House official stated that the order will:

• Require the Labor Secretary to clarify the DOL’s position on alternative assets.
• Provide fiduciary guidance for including these investments in retirement portfolios.
• Encourage inter-agency coordination with the Treasury Department and the SEC to explore regulatory changes supporting crypto adoption in retirement plans.

Why This Matters for Crypto and Retirement Savings

The U.S. 401(k) market is worth $12.5 trillion, and allowing crypto exposure could:

• Expand retail investor access to digital assets.
• Boost legitimacy for cryptocurrencies in the traditional financial system.
• Open new opportunities for crypto firms targeting mainstream adoption.

Currently, most everyday investors are restricted from crypto in retirement plans due to fiduciary risks, regulatory uncertainty, and volatility concerns. However, institutional investors have been increasing their crypto allocations, and this move could help bridge the gap.

Trump’s Push for Retirement Plan Reform

This development follows a July 18 report from the Financial Times, which cited anonymous sources claiming Trump was considering alternative investments like crypto for 401(k) plans.

White House spokesman Kush Desai previously told Cointelegraph that while Trump is focused on economic growth and protecting Americans’ financial futures, no official decisions should be assumed until announced by the president himself.

Regulatory Concerns and Past Actions

SEC Chair Paul Atkins emphasized in a Bloomberg interview that investor education on crypto risks is essential. He stressed the need for clear disclosures so individuals understand what they’re investing in.

Earlier this year, the DOL revoked a 2022 guidance that warned fiduciaries to be “extremely cautious” when considering crypto for 401(k) plans. This suggests a shifting regulatory stance under the current administration.

What’s Next?

If implemented, this executive order could mark a major milestone for crypto adoption, giving millions of Americans the option to diversify their retirement savings with digital assets.

Stay tuned for further updates as the White House prepares to make an official announcement.