United States Mulls over Incorporating Cryptocurrency in Retirement Accounts: Possibility of 401(k) Adoption
The White House is reportedly drafting an executive order that could pave the way for the inclusion of cryptocurrencies in 401(k) retirement plans. This potential move, if confirmed, could reshape U.S. retirement investment strategies, offering investors new channels for diversification.
Key points supporting this include:
- The Department of Labor has already rescinded prior guidance from 2022 that discouraged cryptocurrencies in 401(k)s, signaling a regulatory shift toward acceptance.
- The expected executive order aims to instruct regulatory agencies to explore how 401(k) plans can begin investing in crypto and other alternative assets, tackling remaining obstacles to implementation.
- Major asset managers like Apollo and BlackRock are piloting managed crypto solutions within defined-contribution plans, indicating institutional momentum that this policy would support.
- The executive order is anticipated soon and could expand 401(k) investment options beyond traditional stocks and bonds to include digital assets, metals, private loans, and infrastructure funds.
- However, no official confirmation from the U.S. government exists regarding this potential move.
If implemented, this policy could drive Bitcoin infrastructure developments and attract higher adoption. As of the current report, Bitcoin (BTC) is trading at $117,307.77 with a market cap of $2.33 trillion, holding a 60.86% market dominance and over the past 24 hours has seen a trading volume of $75.74 billion.
Meanwhile, other significant events in the crypto sphere include:
- Trump signs the GENIUS Act mandating stablecoin backing rules.
- The SEC approves Grayscale's fund conversion for a crypto ETF.
- Tether freezes $1.6 million USDT linked to Gaza network.
Unverified reports of U.S. tariffs on Brazil have stirred market speculation, while large investment firms could enhance their portfolios by targeting crypto and private market funds.
Stay tuned for further updates as the White House continues to deliberate on this potential policy change.
- The inclusion of cryptocurrencies in 401(k) retirement plans, if confirmed, could result in increased investments in cryptocurrencies for businesses and individuals, potentially drive Bitcoin infrastructure developments, and increase Bitcoin's market dominance.
- With the Department of Labor already signaling a regulatory shift toward accepting cryptocurrencies in 401(k)s, and the executive order aiming to explore investment opportunities in crypto mining and other alternative assets, strategic investing in cryptocurrencies could be an attractive business move for finance firms and institutional investors.
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