Trump Authorizes Cryptocurrencies and Private Equity in 401(k) Plans
- Cryptocurrencies May Be Integrated into 401(k) Retirement Accounts
- Executive order aims to loosen Department of Labor rules
- Focus on digital assets and private equity for retirement
US President Donald Trump will sign this Thursday An executive order authorizing the Department of Labor to allow the use of cryptocurrencies, private equity, and other alternative assets in 401(k) retirement plans. The measure also involves the Securities and Exchange Commission (SEC), which is expected to collaborate to expand access to these financial products.
The order directs Secretary of Labor Lori Chavez-DeRemer to review the Employee Retirement Income Security Act (ERISA) guidelines. The goal is to work with other federal agencies, such as the Treasury Department, to implement regulatory changes that would allow the inclusion of cryptoassets in retirement accounts.
The SEC has been directed to consider ways to facilitate 401(k) investors' access to assets such as Bitcoin ETFs and other cryptocurrency-related products. The new guidance could directly impact the approximately $12,5 trillion currently allocated to defined contribution plans.
This initiative marks the current administration's most decisive move toward integrating digital assets into pension policy. In May, the Department of Labor had already reversed a previous administration directive that limited access to crypto in 401(k) plans, criticizing the previous approach for favoring restrictions without sound justification.
Companies in the sector have been pushing for changes in this regard. Fidelity, for example, was the first to allow bitcoin in corporate retirement plans, back in 2022. This new measure meets growing demand, despite challenges related to the volatility, valuation, and custody of digital assets.
With the signing of the decree, retirement funds are expected to begin evaluating the inclusion of cryptocurrencies among the options offered to participants, provided they meet security and compliance requirements. The decision expands the institutional reach of the crypto sector in the United States, with official backing from the federal government.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Is a new wave of sell-offs approaching? The ultimate rival of the AI bull market emerges—The "global anchor of asset pricing" breaks through the 5% super threshold
After the 10-year US Treasury yield breaks back above the critical 5% mark, it is more likely to usher in a period of high-level tug-of-war and accelerated asset differentiation. Especially before energy shocks and the significantly eased large-scale expansion of the US fiscal deficit, the conditions to quickly replicate the sharp yield decline seen at the end of 2023 are not yet fully in place.
Anthropic releases another article: What will the economy look like in the AI era?
Anthropic's economics team has released an AI economic scenario model, centered around three scenarios: moderate and gradual growth, transformative changes with GDP doubling, and an extreme situation with 15% annual growth but massive job losses among knowledge workers. The model treats work as "bundles of tasks" and analyzes AI’s enhancement and substitution effects on different types of tasks. Anthropic emphasizes that the economic outlook for 2030 is not predetermined; the key lies in how the dividends from AI are widely shared.
"New Federal Reserve News Agency": Waller's Rate Hike "Has No Way Back", Trump's "Trust" Faces Test
Nick Timiraos believes that after the higher-than-expected August CPI, the probability of the Federal Reserve raising interest rates this week has surged, while Waller’s hawkish stance on inflation has left himself almost "no leeway." With seven weeks before the election, whether or not Waller raises rates will directly test how long Trump's “trust” in him can last. Previously, Waller maintained a balance between the White House and the Federal Reserve by “talking less and avoiding provocation,” but after this meeting, silence will no longer serve as his shield.
Trump Opposes AI "Guardrails": Congress Pushes Legislation for Restrictions, Deepening Bipartisan Divide
U.S. President Trump opposes setting guardrails for artificial intelligence (AI), putting him at odds with a growing number of bipartisan lawmakers. As the midterm elections approach, voters' concerns about AI safety have intensified their doubts about this technology.
Crypto prices
More
