Crypto in 401(k)s?

From expectations to reality

July 18, 2025 • Estimated Reading Time: 3 minutes

President Trump is set to issue an executive order aimed at allowing crypto including Bitcoin and Ethereum to be included in U.S. retirement plans like 401(k)s. This marks a major shift after the previous administration had discouraged such inclusion. Here’s what you need to know.

What Just Changed

  • The FHFA and U.S. Labor Department have rolled back Biden-era guidance that urged plan sponsors to avoid crypto due to volatility and fiduciary risk.

  • The new policy is one of asset-class neutrality, empowering employers/fiduciaries to decide whether to include crypto options in self-directed or core plan menus.

  • President Trump’s executive order also aligns with a broader pro-crypto stance, promoting alternatives like gold, private equity, and infrastructure within retirement accounts.

Why This Matters

  1. Massive Pool of Capital

    • U.S. retirement assets total around $9 trillion. Even a 1% crypto allocation could inject tens of billions into digital assets.

  2. Legitimacy & Tail Risk

    • This move reframes crypto from “speculative novelty” to “institutional asset option,” especially for younger or aggressive investors.

  3. Compliance Caution

    • Fiduciaries still must operate under ERISA, meaning they must prioritize investor protections, especially for volatile assets. Expect slow adoption and a high bar for inclusion.

Market-Relevant Risks & Tailwinds

Tailwind

Impact

Tax-advantaged inflows

Buying crypto through 401(k)s allows deferral of capital gains, and more capital could flow in sustainably.

Selective adoption

Most plans may only provide crypto access through self-directed brokerage windows, not the core lineup.

Regulatory friction

Fiduciary responsibility might delay broader rollout—legal caution is still holding some players back.

Potential Impacts in the Next 3–6 Months

  • Increased Stability in Crypto Flows: Retirement inflows tend to be steady, not frenetic—this could reduce volatility spikes.

  • Shift Toward Mature Assets: Bitcoin and Ethereum (and future ETH ETFs) will likely dominate initial allocations—meme coins less so.

  • Competitive Product Innovation: Financial advisory firms and plan administrators will develop specialized crypto retirement offerings to capitalize on this new policy landscape.

Final Take

This isn’t a tidal wave—it’s the first trickle of a long-term institutional adoption cycle. Allowing crypto in retirement plans signals maturity for the asset class, but true impact will depend on product innovation, fiduciary guardrails, and investor education.