Trump converts 401 (k) s into cryptocurrencies

President Donald Trump, who rebrands himself as one of the most powerful defenders of cryptocurrencies in the world, has just signed an enforcement order that can change the retirement of Americans. For the first time, cryptocurrencies can be included in 401 (k) plans, the retirement bills in the workplace used by approximately 100 million Americans.

According to the White House fact list, Trump’s goal is to « give American workers more investment opportunities » to strengthen long -term retirement security. The order directs the Labor Secretary to review how cryptocurrencies must be classified, regulated and provided to the retirement fund managers.

What does that mean

A 401 (K) is a plan for savings for tax retirement offered by employers. Workers contribute to a part of each salary – often combined partly by their employer – which is usually invested in a combination of shares, bonds and mutual funds. So far, federal guidelines have effectively warn pension administrators to stay away from crypto, citing high variability, fraud risk and lack of regulation. This caution dates from March 2022, when the Ministry of Labor issued guidance telling the wealth managers to « exercise extreme care » before offering cryptocurrency on the 401 menus (K). The Trump administration withdrew this guide in May, but the executive order on Thursday goes a step forward. He actively invites crypto to the $ 12 trillion retirement market.

« President Trump wants to give US workers more investment opportunities to achieve stronger and more financially secured retirement results, » the information sheet said.

Why is it a big deal

This move integrates cryptocurrency into the heart of the traditional financial system and can extend a massive, automatic flow of investment in digital assets. Tom Dunley, Venture’s leader at Varys Capital, explained bets on X (before Twitter): « In the United States, approximately 100 million Americans have a pension vehicle known as 401 (K). Every 2 weeks part of their salaries are directed directly to the purchase of a mixture of shares and bonds. On autopilot. »

He continued: « Overall, it is ~ $ 12t assets with ~ 50b dollars new capital, which runs every 2 weeks. At 1% portfolio distribution to crypto, it brings $ 120 billion in new streams. With a 3% distribution of Crypto’s portfolio, it brings $ 360 billion in new streams. With a 5% distribution of the portfolio to Crypto, it brings $ 600 billion in new streams. « 

Crypto in 401ks is much more news than ETF

In the US, approximately 100 million Americans have an investment car for retirement known as 401 (K). Every 2 weeks, some of their salaries are redirected directly to the purchase of a mixture of shares and bonds. Of autopilot. No … https://t.co/xrwf1nkssw

– Tom Dunlev (@Dunleavy89) August 7, 2025

Although some fund managers will remain cautious, most are expected to target cryptocurrencies to the funds for the Bitcoin and Ethereum stock exchange rather than buy coins directly. ETFs allow investors to receive cryptocurrency exposure without directly holding the main tokens, reducing the risk of retaining and security.

However, the psychological and regulatory change is huge. In 48 hours after the decision on the decision, Bitcoin increased by more than 2% to $ 117,513, according to Coingcko, while Ether jumped nearly 6% to $ 3.894.

Trump factor

For less than a year, the Trump administration has brought a number of big wins for cryptocurrency. The Genius Act has created a national framework for stable. The creation of an American « cryptocurrency » has signaled Washington’s embrace for digital assets as a strategic financial instrument. The 401 (K) move now violates a key barrier to perceive the main one.

Critics, however, warn that the president’s pro-Cripper agenda risks conflict of interest, especially given his deep ties with rich donors of cryptocurrencies and political allies in the industry.

However, for the supporters of Crypto, this is another milestone in what is a ruthless winning series. As Dunleav said, this change is « much more news than ETF. »

Our taking

For now, however, the crypto industry is celebrating. With one signature, the president potentially opened the largest set of investment capital in the country, as a major digital assets in a way that was unthinkable only a year ago. For everyday Americans, this means that their retirement savings are about to become much more interesting and much more meaningful.