In a move that could change retirement investing in the U.S. forever, President Donald Trump has signed an executive order allowing Americans to invest in bitcoin through their 401(k) retirement accounts.
The order opens the door for retirement savers to put their money into alternative assets like private equity, real estate and digital currencies — a shift that could funnel billions into the bitcoin market.
Analysts say this order isn’t just about the government allowing bitcoin in 401(k)s, it’s mostly about the government getting out of the way and allowing people to make their own decisions about what to do with their retirement money.
The U.S. 401(k) system has an estimated $12.5 trillion in retirement savings. If even a small portion of that goes into the bitcoin market, it could be huge.
Bitwise’s Head of Research, Ryan Rasmussen, pointed out that if bitcoin gets even a small share of the $8 trillion 401(k) market, it could bring hundreds of billions into the asset’s market — up to $800 billion if it captures 10%.
Bitcoin’s market cap is now sitting at just above $2.3 trillion. If another $800 billion finds its way into the market, it could propel bitcoin’s price to above $155,000 a coin.
The order tasks the Department of Labor (DOL) with revisiting its previous guidance under ERISA — the Employee Retirement Income Security Act — to allow plan providers more flexibility in offering digital assets and other non-traditional investments.
To make this happen, the order also directs the DOL, SEC and Treasury to work together. They will update regulations and ensure proper investor protections are in place.
“The order instructs the Secretary of Labor to clarify the Department of Labor’s position on alternative assets and the appropriate fiduciary process,” said a White House press release.
The fund managers still have to act in their clients’ best interests. That means they have to evaluate the risks, ensure fair fees, and confirm that all digital asset investments offered are managed responsibly.
The bitcoin market reacted fast. Bitcoin went to over $117,500 from $114,000 just before the order was signed.
Mike Novogratz, CEO of Galaxy Digital, called it a “monster pool of capital” for bitcoin. “Tons of money” will be pouring in, he said.
This isn’t Trump’s first pro-Bitcoin move. Over the past year, his administration has had “Crypto Week” at the White House, pushed for stablecoin regulation, and even created a national bitcoin reserve.
In the same batch of executive orders, Trump also addressed what he called “ideological debanking”. The new rules prohibit banks from denying services based on political or religious beliefs — a practice that has affected digital asset companies in the past.
Senator Cynthia Lummis, a long-time Bitcoin advocate, praised the move. “President Trump is taking bold steps to ensure Operation Chokepoint 2.0 never happens again,” she tweeted.
The 401(k) shift also fits into a broader trend: institutional bitcoin adoption is accelerating. So far in 2025, institutions have bought over 545,000 BTC, while miners have only produced 97,000 BTC, according to Bitwise.
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