President Trump signed an executive order on August 7, 2025, allowing $12.5 trillion in 401(k) funds to invest in cryptocurrencies, a move supported by a Reuters report confirming the order’s intent to diversify retirement options with assets like crypto, private equity, and real estate, though implementation may face legal challenges due to litigation risks noted by BlackRock executives.
This policy shift reverses a 2022 U.S. Department of Labor guidance under the Biden administration that urged caution with crypto in 401(k)s due to fraud and volatility risks, with a 2024 GAO report highlighting that only 69 crypto options existed in plans via self-directed windows, suggesting limited prior adoption despite 32% of participants expressing interest per a Charles Schwab survey.
The order aligns with Trump’s personal financial interests, as a Washington Post analysis from August 4, 2025, revealed his $51 million crypto stake and nearly 70 administration nominees holding digital assets, raising conflict-of-interest concerns amid a $26 million crypto donation surge to his campaign, per Axios, potentially influencing policy to favor industry growth over retiree protection.
