President Donald Trump has signed a landmark executive order permitting the inclusion of Bitcoin and other cryptocurrencies within 401(k) retirement accounts. Following this announcement, Bitcoin’s price surged significantly, surpassing the $117,500 mark from a recent low near $114,278. The order directs the Department of Labor to review existing ERISA guidelines and establish clear regulations that facilitate diversified investment funds incorporating alternative assets such as digital currencies.
Furthermore, the executive directive encourages enhanced collaboration among the Department of Labor, the Treasury Department, the Securities and Exchange Commission (SEC), and other federal regulators to implement comprehensive regulatory reforms that support this policy shift. The SEC has been specifically tasked with updating its rules to promote innovative retirement investment opportunities. According to a White House fact sheet, President Trump aims to broaden investment options for American workers, enabling them to build stronger and more secure financial futures. Alternative investment vehicles—including private equity, real estate, and digital assets—are highlighted for their potential to offer competitive returns and portfolio diversification.
Industry leaders have welcomed the move with enthusiasm. Mike Novogratz, CEO of Galaxy Digital, described the policy as a “major investment inflection point” likely to drive substantial inflows into Bitcoin and cryptocurrency markets. Ryan Rasmussen, head of research at Bitwise, estimated that even a modest adoption of crypto assets within the 401(k) market could channel billions of dollars into Bitcoin. Institutional demand for Bitcoin has accelerated notably between 2023 and 2025, reflecting growing acceptance and mainstream integration.
Additionally, corporations such as Nakamoto and Twenty One Capital have emerged as significant Bitcoin holders, collectively managing multi-billion-dollar crypto reserves. Nakamoto’s anticipated partnership with KindlyMD, expected to be finalized by August, is projected to further enhance its capacity for Bitcoin acquisitions. This policy change marks a pivotal moment in advancing Bitcoin’s institutional adoption and is poised to modernize the landscape of retirement investment in the United States.
Source: bitcoinmagazine
