In brief:
₿- President Trump is expected to sign an executive order allowing 401(k) retirement plans to invest in cryptocurrencies and other alternative assets.
₿- The administration also supports a $600 de minimis tax exemption to encourage everyday crypto use and simplify taxation on small transactions.
The Trump administration is doubling down on its pro-crypto agenda following the recent passage of three major bills—the Clarity Act, GENIUS Act, and Anti-CBDC Act. Now, speculation is growing over a potential executive order that could allow American 401(k) retirement plans to invest in cryptocurrencies and other alternative assets.
According to The Financial Times, President Donald Trump is reportedly preparing to sign an order this week directing regulatory agencies to investigate how 401(k) plans could include digital assets, metals, infrastructure funds, and private loans.
While the White House has not confirmed the order’s contents, officials maintain that nothing is final unless announced by the president himself.
Shifting the future of retirement investing throught crypto
The rise of cryptocurrencies in the retirement system would mark a historic shift in retirement investing.
Traditionally, 401(k) plans focus on mutual funds, stocks, and bonds. As of September 2024, these plans held $8.9 trillion across more than 700,000 accounts. If crypto is added to the mix, it could spark massive new inflows into digital assets.
Momentum is already building. In May, the Labor Department repealed Biden-era restrictions on crypto in retirement portfolios. Financial giant Fidelity, with $5.9 trillion in assets under management, has already introduced a crypto-enabled retirement account.
At the state level, North Carolina has proposed legislation allowing up to 5% of its public retirement funds to be allocated to Bitcoin.
Pushing for everyday crypto adoption
Alongside structural reforms, the Trump administration is also pushing to ease taxation on everyday crypto use. At a recent press briefing, White House Press Secretary Karoline Leavitt confirmed the president’s support for a de minimis tax exemption on crypto transactions under $600. Under current tax law, even buying a coffee with Bitcoin can trigger a taxable event.
“The president wants to make crypto easier to use for everyday Americans,” Leavitt stated. “With a de minimis exemption, it could finally be possible to use digital assets like normal money—without facing complicated tax rules.”
The exemption is expected to lower friction for consumers and could drive broader adoption by removing one of the biggest barriers to using digital assets in daily life.
America as the crypto capital
With strong momentum behind both regulation and policy reform, the U.S. appears closer than ever to becoming the global hub for cryptocurrency innovation. More crypto legislation is expected in the months ahead, and President Trump has signalled readiness to sign further pro-crypto bills. The rest remains to be seen.
Stay informed,
Rodcas Consulting Group