Crypto Assets join Traditional Retirement Plans: A New Reality Unfolding
In a significant move towards the mainstream adoption of cryptocurrencies, U.S. President Donald Trump has signed an executive order allowing digital assets to be held in 401(k) retirement accounts. This policy aims to democratize access to alternative assets like cryptocurrencies, private equity, and real estate for individual retirement investors.
The executive order instructs the U.S. Department of Labor to reexamine fiduciary rules under ERISA (Employee Retirement Income Security Act of 1974) regarding alternative investments in 401(k) plans and consider creating safe harbor protections for fiduciaries. This could reduce legal risks for plan sponsors who choose to offer alternative assets like crypto within retirement plans.
However, practical implementation will take time, likely months or years, as new guidance is developed, regulatory changes from agencies like the SEC are considered, and major 401(k) providers create appropriate fund options. Employers will also need to modify plan offerings accordingly, and it remains uncertain how readily plan sponsors and participants will adopt these higher-risk asset classes.
Risks include the higher costs, complexity, and lower liquidity associated with alternative investments compared to traditional assets like stocks and bonds. These factors may result in slow adoption despite the opportunity for enhanced risk-adjusted returns. The executive order emphasizes the need for fiduciaries to educate themselves about these investments before integrating them into retirement plans.
The U.S. retirement market holds over $12.5 trillion in 401(k) assets. An influx of capital could push Bitcoin to $180k+ in the nearish future, according to some predictions. This influx of capital could represent 1-2%+ of their weekly paychecks, and 1-2%+ of their entire 401ks for some investors.
The order sets a framework for crypto-focused funds, trusts, and ETFs to be offered as plan options by retirement providers like Fidelity, Schwab, and Vanguard. Fundamental Global Inc (FGF) filed to raise $5B to buy more ETH, while ChainLink's LINK token jumped 11% after the team introduced its ChainLink Reserve.
Meanwhile, in the world of NFTs, Bitcoin NFTs were led by Bitcoin Wizards (+46%), Taproot Wizards (+9%), and Bitcoin Puppets (+8%). ETH NFT leaders were mostly green; Punks (+1% at 53 ETH), Pudgy (+1% at 14.3), and BAYC (+2% at 12.1 ETH. Memecoin leaders are also green on the day; DOGE (+4%), Shiba (+2%), PEPE (+3%), PENGU (+1%), BONK (+2%), TRUMP (+3%), SPX (-1%), and FARTCOIN (+4%) led the pack.
The top token on Zora's creator launchpad is a porn company "Fake Taxi". Elon Musk's tweet of the 'Magic Internet Money' meme sent Runes soaring (+50% to $90M), MIM (+50%), PUPS (+30%), and RSIC (+60%) following suit.
In other news, Eric Trump teased his new mining / treasuryco 'American Bitcoin', backed by the Winklevoss twins, and said "Next stop, NASDAQ". Pudgy Penguins launched Igloo APAC as their official Asia arm. Ripple acquired stablecoin payments platform Rail for $200M, planning to integrate RLUSD.
The executive order directs the Department of Labor to treat digital assets as permissible alternative investments within defined contribution retirement plans. This move fulfills a key part of Trump's 2024 campaign platform and accelerates the institutional mainstreaming of crypto as an investable asset class.
In the world of altcoins, PENDLE, AERO, and LINK led top movers, while BMNR saw its highest trading volume day since launch with $2.7B. GAMBLE (+175%), YNE (+43%) and IRIS (+34%) led top movers in the AI sector of crypto.
The DogWifHat knitted hat sold for $800,000 to the funder of the Bags launchpad. BOSS jumped another 80% to $32M leading new movers, while Nyan soared 31,000% to $11M on Bags. Pump.fun announced the 'Glass Full Foundation' and that it will be buying its own community coins, already deploying $1.69M across 10 different Pump tokens.
This is one of the biggest unlocks of capital in crypto history. Even a conservative 1% allocation to crypto would represent $125B in new capital - double the combined assets of all current Bitcoin and Ethereum ETFs (~$63B).
[1] CNBC, "Trump signs executive order to allow cryptocurrencies in 401(k) retirement accounts", 8 August 2025. [2] Bloomberg, "Trump's executive order could open 401(k)s to crypto, but practical impact remains uncertain", 8 August 2025. [3] The Wall Street Journal, "Trump's executive order aims to democratize access to alternative assets for retirement investors", 8 August 2025. [4] Forbes, "Trump's executive order: Risks and opportunities in including crypto in 401(k) retirement accounts", 8 August 2025. [5] Investopedia, "Trump's executive order: Potential benefits and challenges of including crypto in 401(k) retirement accounts", 8 August 2025.
[1] The executive order allows for crypto, such as Bitcoin and Ethereum, to be held in 401(k) retirement accounts, marking a significant move towards mainstream crypto adoption.[2] The U.S. Department of Labor will reexamine fiduciary rules to consider creating safe harbor protections for those who choose to offer crypto within retirement plans.[3] Influential digital assets, including stablecoins, tokens, and NFTs, may see increased investment as a result, potentially leading to price surges.[4] The influx of capital from 401(k) accounts could push Bitcoin towards $180k+, representing a significant portion of some investors' weekly paychecks and 401(k) assets.[5] Fundamental Global Inc (FGF) filed to raise $5B to buy more ETH, indicative of increased institutional investment in Ethereum.[6] ChainLink's LINK token saw a 11% jump after the team introduced its ChainLink Reserve, reflecting the increased interest in DeFi.[7] Bitcoin and ETH NFTs saw various leaders in the market, with Bitcoin Wizards, Bitcoin Puppets, and Ether Punks topping the charts.[8] Memecoins, such as DOGE, Shiba, PEPE, PENGU, BONK, TRUMP, SPX, and FARTCOIN, also saw gains in the NFT world.[9] The order had a ripple effect across the crypto market, with PENDLE, AERO, LINK leading the top movers in the altcoin sector, and GAMBLE, YNE, and IRIS topping in the AI sector.
