Trump 401(k) Crypto Executive Order Bill Introduced
A Republican lawmaker in the US House of Representatives has introduced legislation that would codify President Donald Trump’s executive order on 401(k) plans, which expands access to alternative assets, including cryptocurrency. This move to make the Trump 401(k) crypto executive order into federal law represents a key step in shaping the future of US retirement savings.
Background to the Trump 401(k) Crypto Executive Order
On August 7, 2024, President Trump signed Executive Order 14330, calling for expanded access to “alternative assets” in 401(k) retirement accounts. The order directs the Department of Labor, the Securities and Exchange Commission (SEC), and the Treasury Secretary to review and prioritize guidance for 401(k) plans within six months, which includes digital assets such as cryptocurrencies, as well as private market investments, real estate, commodities, infrastructure projects, and lifetime income strategies, if considered suitable by a plan fiduciary.
While executive orders set policy direction, they do not have the force of law and can be reversed by future administrations or court decisions. Codifying the Trump 401(k) crypto executive order into law would provide lasting regulatory certainty for the inclusion of alternative assets in retirement accounts.
The new House bill, introduced by Republican Representative Troy Downing, aims to give this executive order the backing of federal statute. Politico reported that Downing’s draft was submitted to the House Financial Services Committee, even as a government shutdown remains ongoing.
Market Reaction and Policy Changes
The debate over cryptocurrency in 401(k) accounts has intensified throughout 2024. In May, the US Department of Labor rescinded previous guidance cautioning fiduciaries to be “extremely cautious” when considering cryptocurrencies for retirement plans. The shift comes amid increasing interest from lawmakers and stakeholders in broadening retirement investment opportunities.
In September, nine US lawmakers sent a letter to SEC Chair Paul Atkins, urging faster implementation of Trump’s directive. They argued that the move would “help the 90 million Americans that are currently restricted from investing in alternative assets to secure a dignified, comfortable retirement,” according to Cointelegraph reporting.
The Investment Company Institute estimated that Americans held $9.3 trillion in 401(k) accounts as of June 30, 2025, highlighting the potential impact of permitting cryptocurrencies and other alternative investments in these accounts. André Dragosch, head of European research at Bitwise, told Cointelegraph that the change could be “a major step” for Bitcoin adoption in the US and could channel billions in new capital toward digital assets.
While some finance experts continue to warn about risks associated with including digital assets in retirement accounts, sentiment within the crypto industry is broadly optimistic.
What’s Next for Crypto in US 401(k) Plans?
Coding the Trump 401(k) crypto executive order into law would mark a permanent shift for US retirement policy, subject to debate and passage in both the House and Senate. If enacted, it would give plan fiduciaries greater flexibility to offer alternative assets—such as cryptocurrency—as investment options for retirement savers.
The potential changes to US retirement accounts are under close observation by investors, regulators, and policymakers alike. The outcome could set a precedent for broader adoption of digital assets in mainstream financial products.
For further updates and analysis, visit the cryptocurrency news section at Vizi.com.
Sources
Reporting via Cointelegraph.
