Trump 401(k) Executive Order 'A Major Step Toward Mainstream Adoption'

Trump's 401(k) executive order could have a significant impact on both the crypto markets and investors.gettyThe executive order President Donald Trump signed on Thursday, August 7, which will allow investors to use their 401(k) accounts to purchase cryptocurrencies, represented “a major step toward mainstream adoption" of such assets, according to analyst Joe DiPasquale.

The move will achieve this progress by giving “millions of Americans potential access to digital assets through familiar retirement vehicles,” DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, stated via email.

Tim Enneking, managing partner of Psalion, also emphasized the significance of the executive decision.

“Trump’s addition of crypto, real estate and PE could be massive for all three sectors, but is almost certain to be so for digital assets,” he stated through emailed commentary.

“This is true not only because of the massive pool of retirement capital in the US which will now be able to invest in crypto, but also because of the further legitimization of crypto as an asset class.”

“On the other hand, the executive order directed the SEC, IRS and other agencies to change their rules to accommodate this new approach, which will take time. Further, retirement money is inherently conservative, so I wouldn’t expect an explosion of 401(k) funds into digital assets,” he emphasized.

MORE FOR YOU“However, over time, the effect will be absolutely huge, almost certainly making the current $4T total market cap of the sector pale in comparison to what’s coming!” Enneking concluded.

DiPasquale also spoke to the potential time lag, stating that “While uptake may start slowly due to plan provider caution and fiduciary concerns, over time it could channel significant long-term capital into the space — particularly if Bitcoin and Ethereum are included alongside traditional alternatives like gold.”

“This structural demand could help dampen volatility and broaden the investor base beyond the current retail and institutional mix,” he noted.

Brian Huang, cofounder of fintech firm Glider, also weighed in, emphasizing how this executive order could potentially affect all digital assets.

“This executive order sets the precedent for any digital asset in a 401(k). We’re not just talking about cryptocurrencies; we’re talking about on-chain stocks, RWAs, and tokenized private equity," he stated via email.

“If you think this is just about holding BTC in your 401(k), you’re missing the bigger picture. Tokenizing assets is the future that unlocks direct ownership of assets and removes middlemen,” Huang noted.

“One day, the majority of assets in 401(k)s will be on-chain,” he predicted.

Tom Bruni, editor-in-chief & VP of community at Stocktwits, also emphasized the impact that this key development will have.

“Trump’s latest executive order will add fuel to retail’s growing adoption of cryptocurrencies as part of their investment portfolios,” he noted.

“This move will open up trillions more in capital to the crypto market, both directly and indirectly, and offer ‘stickier’ capital flows as most investors tend to take a long-term, dollar-cost-averaging approach to investing via their employer-sponsored retirement accounts,” Bruni added.

“Total retirement assets at the end of Q1 2025 totaled $43.4 trillion, of which $12.2 trillion (28% of the total) is held in defined contribution plans like 401(k)s and 403(b)s,” he stated, citing figures provided by the Investment Company Institute.

“For context, that’s roughly ¾ of the size of the US individual retirement account market, which is $16.8 trillion in assets and has already largely been opened up to cryptocurrency investments. With that said, certain providers of these accounts still limit crypto exposure, even through ETFs and other traditional vehicles,” noted Bruni.

“This executive order, which further expands access to crypto through other retirement plans, will likely pressure the remaining holdouts to begin allowing investors to access crypto through their accounts, or they’ll risk losing market share,” he predicted.