President Donald Trump signed a significant executive order on Thursday, allowing Americans to allocate cryptocurrencies and other alternative assets within their 401(k) retirement accounts and other defined-contribution plans. The order directs the U.S. Department of Labor to reevaluate existing restrictions on investments such as digital assets, private equity, and real estate in these plans. The change marks a shift in federal policy and has drawn both enthusiasm and concern from across the financial and crypto communities. Trillions in Retirement Capital Now in Focus As of Q1 2025, total U.S. retirement assets stood at $43.4 trillion, according to the Investment Company Institute and the Federal Reserve Board. Of that, more than $12 trillion came from defined-contribution plans, including $8.7 trillion held in 401(k)s. With such a massive capital base, even a small allocation to crypto could significantly impact the market. Crypto Leaders Applaud the Decision Matt Hougan, Chief Investment Officer at Bitwise, said the executive order could fundamentally reshape the crypto market. He described the development as the beginning of a “slow, steady, consistent bid” from retirement savings that could lead to “higher returns and lower volatility.” Hougan also emphasized the suitability of crypto in retirement portfolios, calling it “the best-performing asset class in the world over the past decade.” Ji Hun Kim, CEO of the Crypto Council for Innovation (CCI), said the executive order signals crypto’s growing acceptance in mainstream finance. “Americans should have the opportunity and freedom to include these investments within their retirement plans,” Kim stated. He added that CCI appreciated the administration’s “continued commitment to clear policies” and making the U.S. “the crypto capital of the world.” Infrastructure and Regulation Take Center Stage Abdul Rafay Gadit, co-founder of ZIGChain, said the move paves the way for the infrastructure necessary to support tokenized investment products at scale. He pointed out the increasing regulatory clarity under SEC Chairman Atkins, suggesting that a “unified framework” is starting to emerge. However, not all reactions were without caution. Michael Heinrich, CEO of 0G Labs, called the development a “watershed moment” for the industry. Still, he warned of the dual nature of the shift, saying, “Done right, this could unlock trillions in retirement capital for Bitcoin and other compliant assets. Done poorly, it risks political and financial backlash.” He stressed that critical implementation details—such as qualifying tokens, custody arrangements, and regulatory safeguards—would determine the success or failure of the initiative. Bitcoin Seen as Early Beneficiary Joshua Krüger of the dEURO Association believes Bitcoin will be the first asset to benefit from the change due to its institutional backing. “Asset managers such as BlackRock, Fidelity and Franklin Templeton are already lined up with corresponding offerings,” he noted. He said other cryptocurrencies may follow in the medium term, but only after establishing solid regulatory and technical foundations. Tezos co-founder Arthur Breitman echoed these views, noting that the scale of the U.S. retirement market could help legitimize crypto as an asset class. While supporting more options for savers, Breitman expressed concerns over misinformed investment choices. He warned that private assets in retirement accounts often suffer from “high fees, hard-to-determine pricing, and manager manipulation to mask volatility.” Critics Warn of Financial Risks Peter Schiff, a long-time critic of crypto, voiced strong opposition to the move. He argued that allowing crypto in 401(k)s could worsen the already serious U.S. retirement savings gap. “Most Americans have saved far less than needed to have any hope of retirement,” Schiff posted on X. “By allowing Americans to gamble what little retirement savings they have in their 401(k)s on Bitcoin and other cryptos, Trump just made this problem much worse.”
