Cryptocurrencies like Ethereum, Solana, and XRP regain momentum as whispers circulate that Trump is considering permitting crypto investments in 401(k) plans.

In a move that could broaden investment options for millions of Americans, President Trump is reportedly set to sign an executive order allowing cryptocurrencies to be held in 401(k) retirement accounts. This potential development has sent ripples through the cryptocurrency market, with several major tokens posting notable gains.

The overall crypto market is up 2.9% following the news, with Ethereum, Solana, and XRP leading the rebound. Ethereum, the second-largest cryptocurrency by market cap, has climbed 7.3% over the past 24 hours, reaching $3,856.26 and a market capitalization of $465 billion. Solana is currently 41.3% away from its all-time high of $293.31, which it reached in January, but it has seen a 4.9% increase in value.

The potential inclusion of cryptocurrencies in 401(k)s could expand investment options and potentially increase diversification and returns for retirement savers. If Trump goes ahead with the executive order, approximately $8.7 trillion held in 401(k)s could potentially flow into the crypto market.

However, the move is not without its challenges. Because of ERISA rules protecting employees’ best interests and the complexity of alternative assets, it may take years before this change is implemented broadly. Plan fiduciaries will need to carefully vet asset managers and investment effectiveness to protect participants while navigating new investment categories.

Experts warn that while the potential rewards may be attractive, the increased risks and costs mean investors should approach these options carefully to avoid jeopardizing retirement savings. Alternative assets including cryptocurrencies tend to be more volatile and involve higher fees (legal, management, operational), which can erode returns.

Dogecoin, Hyperliquid, and Sui are among the major tokens that have posted notable gains on the day, up 7%, 3.5%, and 10% respectively. The Pudgy Penguins' PENGU token is the biggest winner of the top 100 cryptocurrencies, jumping 13.1% on the day.

The bullish news has helped the markets rise, easing concerns that were sparked earlier in the week by Trump rekindling his trade war. The Investment Company Institute's Q1 2025 report states that 401(k) accounts account for approximately $8.7 trillion worth of assets.

It's important to note that the executive order initiates a regulatory process expected to unfold over several years before alternative assets become widely available in retirement plans, reflecting both high demand and significant challenges of integrating such investments into the traditionally conservative 401(k) framework.

Sources: - [1] Bloomberg - [2] CoinGecko - [3] Decrypt - [4] Investment Company Institute - [5] Myriad Markets

The crypto market has seen gains following President Trump's potential decision to allow cryptocurrencies in 401(k) retirement accounts, with Ethereum, Solana, and XRP leading the rebound.
If Trump signs the executive order, approximately $8.7 trillion could potentially flow into the crypto market, expanding investment options and increasing diversification for retirement savers.
However, the move may take years to be implemented broadly due to ERISA rules and the complexity of alternative assets like cryptocurrency.
Plan fiduciaries will need to carefully vet asset managers and investment effectiveness to protect participants while navigating new investment categories.
Experts warn that while the potential rewards are attractive, the increased risks and costs mean investors should approach these options carefully, as alternative assets tend to be more volatile and involve higher fees.
Dogecoin, Hyperliquid, Sui, and Pudgy Penguins' PENGU token are among the major tokens that have posted notable gains today, with PENGU leading with a 13.1% increase.
The bullish news has helped the markets rise, easing concerns sparked earlier in the week by Trump rekindling his trade war.
The executive order initiates a regulatory process expected to unfold over several years before alternative assets become widely available in retirement plans, reflecting both the high demand and the significant challenges of integrating such investments into the traditionally conservative 401(k) framework.

Cryptocurrencies like Ethereum, Solana, and XRP regain momentum as whispers circulate that Trump is considering permitting crypto investments in 401(k) plans.