United States President Donald Trump’s signed an executive order on Thursday opening the door for Americans to include crypto and other alternative assets in their 401(k) retirement accounts and other defined-contribution plans, a policy shift that has sparked both optimism and caution across the crypto industry.
Trump’s executive order directs the US Labor Department to reevaluate restrictions around alternative assets like crypto, private equity and real estate in 401(k)s and other defined-contribution plans.
As of the first quarter of 2025, US retirement assets totaled $43.4 trillion, according to the Investment Company Institute and the Federal Reserve Board. Defined-contribution plans, including $8.7 trillion in 401(k)s, accounted for more than $12 trillion.
With billions of dollars potentially flowing into crypto, industry stakeholders shared their opinions and reactions to the executive order.
Steady demand could reshape crypto markets
Bitwise chief investment officer Matt Hougan said that the change could transform the crypto markets by introducing a “slow, steady, consistent bid” from retirement contributions. “The result is higher returns and lower volatility,” Hougan added.
Hougan also said that crypto is in the 401(k)s for some investors. “It’s been the best-performing asset class in the world over the past decade, and it’s well-positioned for the decade to come,” Hougan added.
Crypto Council for Innovation CEO Ji Hun Kim said the decision affirms digital assets’ place in the US financial system. “Americans should have the opportunity and freedom to include these investments within their retirement plans,” Kim said.
Kim added that the CCI applauds the administration’s continued commitment to clear policies to make the US the “crypto capital of the world.”
Abdul Rafay Gadit, co-founder of compliance-focused blockchain platform ZIGChain, pointed to the executive order helping build infrastructure needed to support tokenized investment vehicles at scale.
“The reason why this is important is because it connects with the broader regulatory clarity coming from Chairman Atkins’s SEC leadership,” Gadit said. “We’re starting to see a unified framework emerge.”
Executive order’s impact depends on its execution
Michael Heinrich, co-founder and CEO of 0G Labs, said the executive order is a “watershed moment” for crypto’s integration into the financial system. However, he cautioned that the development could go both ways.
“Done right, this could unlock trillions in retirement capital for Bitcoin and other compliant assets,” he said. “Done poorly, it risks political and financial backlash.”
Heinrich also highlighted that the details like which tokens would qualify, how custody is handled and what guardrails will be in place are crucial.
Joshua Krüger, head of growth at the dEURO Association, said the main short-term beneficiary is likely to be Bitcoin (BTC). With BTC having the strongest institutional acceptance, he predicts that it will be the first to be integrated into regulated pension products.
“Asset managers such as BlackRock, Fidelity and Franklin Templeton are already lined up with corresponding offerings,” Krüger said.
He said altcoins and smaller crypto projects will likely only benefit in the medium term as they require resilient structures, including regulated products, reliable standards and increased trust from institutions.
Tezos co-founder Arthur Breitman agreed that the scale of the US retirement market could set a precedent for legitimizing crypto but warned of potential pitfalls.
While Breitman supports giving savers more investment choices over paternalistic regulation, he added that many investors could make poor allocation decisions.
“Private assets could trade off illiquidity for higher returns, which fits the long horizon of a retirement account,” Breitman said.
“However, in practice, it rarely plays that well — high fees, hard-to-determine pricing, and manager manipulation to mask volatility are common problems.”
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Peter Schiff says the move could worsen existing problems
Not everyone in the financial world welcomed the news. Gold advocate and crypto critic Peter Schiff warned that this new development could worsen what he sees as a dire retirement savings gap in the US.
“Most Americans have saved far less than needed to have any hope of retirement,” Schiff wrote 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!”
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