Trump’s 401(k) Crypto Order Sparks Mainstream Momentum for Digital Assets

In a groundbreaking move that could redefine the landscape of retirement investing, President Donald Trump signed an executive order on Thursday, August 7, permitting the inclusion of cryptocurrencies in 401(k) retirement plans. The decision, hailed by industry leaders as a “major step toward mainstream adoption,” is set to open up the world of digital assets to millions of Americans.

Joe DiPasquale, CEO of crypto hedge fund BitBull Capital, described the order as a transformative development for crypto accessibility. “This will allow millions of Americans potential access to digital assets through familiar retirement vehicles,” DiPasquale stated.

The inclusion of crypto in 401(k) plans brings with it a wave of validation for digital assets. Tim Enneking, managing partner of Psalion, emphasized the broader implications: “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.”

While the change is momentous, Enneking noted that implementation will take time. “The executive order directed the SEC, IRS, and other agencies to change their rules to accommodate this new approach. Further, retirement money is inherently conservative, so I wouldn’t expect an explosion of 401(k) funds into digital assets,” he said. However, he added, “Over time, the effect will be absolutely huge, almost certainly making the current $4 trillion total market cap of the sector pale in comparison to what’s coming!”

DiPasquale also acknowledged a potential slow rollout, citing provider caution and fiduciary oversight, but remained optimistic: “If Bitcoin and Ethereum are included alongside traditional alternatives like gold, it could channel significant long-term capital into the space.”

Brian Huang, co-founder of fintech firm Glider, underscored that the implications extend far beyond just cryptocurrencies. “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 said. “One day, the majority of assets in 401(k)s will be on-chain.”

Tom Bruni, VP at Stocktwits, echoed the sentiment, stating the order “will add fuel to retail’s growing adoption of cryptocurrencies as part of their investment portfolios.” He also pointed to the scale of potential impact: “Total retirement assets at the end of Q1 2025 totaled $43.4 trillion, with $12.2 trillion held in defined contribution plans like 401(k)s and 403(b)s.”

Bruni predicted this move would pressure financial institutions to adapt quickly or risk falling behind. “This executive order will likely pressure the remaining holdouts to begin allowing investors to access crypto through their accounts, or they’ll risk losing market share,” he said.

As regulatory frameworks shift and retirement plan providers adapt, the road to widespread crypto adoption through 401(k)s may be gradual — but the momentum appears irreversible. Trump’s order could mark a watershed moment in the intersection of traditional finance and decentralized innovation.