TLDR
- President Trump signed a new executive order this week allowing alternative assets to be included in 401(k) plans — including real estate, commodities, and digital assets.
- The changes will go into effect next year.
- In related news, the Michigan state pension fund has expanded its crypto positions via ETFs.
Thanks to a recent executive order signed by President Trump, Bitcoin and Ethereum could soon be standard options in 401(k) plans across America. For crypto newcomers, this represents a massive shift that could make digital assets as common in retirement portfolios as traditional stocks and bonds.
This is the biggest news we’ve read about since the GENIUS Act was signed. Granted…that was just a few weeks ago. But still. Let’s get after it.
The Executive Order
On August 7, 2025, Trump signed an executive order titled “Democratizing Access to Alternative Assets for 401(k) Investors”. Sounds fancy, right? In plain English, it means the government is clearing the way for regular folks to invest in crypto through their workplace retirement plans.
The order specifically mentions “holdings in actively managed investment vehicles that are investing in digital assets” as one type of alternative investment that should be available to 401(k) participants. Bitcoin, Ethereum, and other cryptocurrencies could soon be as easy to invest in as your company’s stock.
In Related News…
Michigan’s state pension fund has already been quietly building its crypto position, owning $10.7 million worth of Bitcoin through the ARK 21Shares ETF and another $9.6 million in Ethereum. When state pension managers are comfortable putting taxpayer retirement money into crypto, you know something big is happening.
What the Executive Order Means For New Crypto Users
If you’ve been crypto-curious but haven’t taken the plunge, 401(k) integration could be your perfect entry point. Here’s why:
Dollar-Cost Averaging Made Easy
When you contribute to your 401(k), you’re automatically buying investments regularly over time. This strategy, called dollar-cost averaging, is particularly effective with volatile assets like crypto. Instead of trying to time the market, you’ll be buying Bitcoin and Ethereum consistently, smoothing out the ups and downs.
Professional Management
The executive order emphasizes that plan fiduciaries must “carefully vet and consider all aspects” of these investments. Professionals will be doing the heavy lifting of research and risk assessment, not you.
Tax Advantages
Traditional 401(k) contributions are made with pre-tax dollars, meaning you won’t pay income tax on money you invest in crypto until you withdraw it in retirement. Roth 401(k) contributions are made with after-tax dollars, but then grow tax-free. Either way, you’re getting tax benefits that don’t exist with regular crypto investing.
The Timeline and What to Expect
The executive order gives the Department of Labor 180 days to clarify guidelines and propose new rules. We’re looking at early 2026 before these changes start rolling out to actual 401(k) plans.
Don’t expect every employer to immediately add crypto options. Larger companies with more sophisticated HR departments will likely lead the way, while smaller employers might take longer to adapt.
When crypto options do become available, they’ll probably come in the form of funds or ETFs rather than direct Bitcoin and Ethereum purchases. Think of it like how your current 401(k) probably offers mutual funds rather than individual stocks.
Getting Ready for the Crypto 401(k) Revolution
While you wait for your employer to catch up, there are smart moves you can make now:
Educate Yourself
Start learning the basics of Bitcoin and Ethereum. You don’t need to become a blockchain expert, but understanding what these assets are and how they work will help you make informed decisions when the time comes.
Review Your Current 401(k)
Make sure you’re already maximizing any employer match — that’s free money you shouldn’t leave on the table. Once crypto options become available, you’ll want to think about what percentage of your overall portfolio makes sense for digital assets.
Consider Starting Small Outside Your 401(k)
If you’re excited about crypto and don’t want to wait, consider investing a small amount through a beginner-friendly platform. This hands-on experience will make you more comfortable when workplace options become available.
Have Realistic Expectations
The executive order acknowledges this by requiring fiduciaries to “prudently balance potentially higher expenses against the objectives of seeking greater long-term net returns”. Crypto allocations in 401(k) plans will likely start small — maybe 1-5% of total portfolio value rather than major allocations.
There’s also the question of which specific crypto investments will be offered. Don’t expect your 401(k) to offer every meme coin or experimental token. The focus will likely be on established cryptocurrencies like Bitcoin and Ethereum, probably through professionally managed funds.
Riding the Crypto Journey into the Retirement Sunset
The crypto revolution is coming to retirement accounts. The question is: will you be prepared to take advantage of it?
Start by getting comfortable with the basics of cryptocurrency. Learn what Bitcoin and Ethereum actually do, understand the technology behind them, and get familiar with how crypto markets work. When your employer eventually offers these options, you’ll be ready to make informed decisions rather than guessing.
Consider this executive order what it really is — a signal that crypto is moving from the fringes to the mainstream of American finance. Your future retirement might very well include digital assets alongside traditional investments. Getting educated now puts you ahead of the curve and ready to make the most of these new opportunities when they arrive.
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