President Trump Signs Order Letting Americans Add Crypto to 401(k) Plans – Here’s the Risk

Key Points

1. The executive order permits alternative assets like cryptocurrencies, private equity, and real estate to be added to 401(k) portfolios.

2. Industry experts, such as Mercuryo CEO Petr Kozyakov, view this as a milestone reflecting growing mainstream acceptance of digital assets.

3. A 1% crypto allocation in 401(k) plans could channel approximately $90 billion into crypto markets, according to estimates.

4. Risks include fiduciary responsibilities under ERISA, volatility, and the need for clear regulatory frameworks, as noted by Taxbit's Miles Fuller.

5. Strategies to mitigate risks include long-term dollar-cost averaging and using qualified custodians or crypto-based ETFs, as suggested by MV Global's Kyle Chassé.