The Unanticipated Impact of Trump’s Executive Order on Cryptocurrency in 401(k) Plans

Key Points

1. The executive order permits 401(k) retirement plans to invest in cryptocurrencies under the 1974 ERISA law, opening a market worth approximately $12.5 trillion.

2. This move is expected to increase institutional inflows into Bitcoin and cryptocurrency markets, balancing price volatility, especially with the rise of spot crypto ETFs.

3. Industry representatives believe the final guidelines could permanently integrate cryptocurrencies into 401(k) plans, fostering long-term market growth.

4. Following the news, Bitcoin's price rose by 2.01%, surpassing $116,000, while Ethereum increased by 5.46%, crossing $3,800, with similar gains in XRP, BNB, and Solana.