This initiative would mark a major shift in US retirement policy. Traditionally, 401(k) plans are limited to conventional assets like stocks and bonds. By including crypto and other alternatives, the White House aims to modernize investment options and tap into the growing appeal of digital assets.
A 401(k) is a tax-advantaged retirement plan in which US employees contribute a portion of their wages to an investment account. The new executive order is expected to direct federal regulators to evaluate and revise existing rules that currently restrict access to alternative assets.
If implemented, the move could lead to policies supporting direct crypto ownership, exposure through ETFs, and investments in blockchain-focused companies.
He noted:
“US retirement assets sit at $43 trillion, with $9 trillion in 401ks. With Trump opening the flooodgates, if crypto sees just a 1% allocation from 401ks, that’s ~$90B in fresh inflows. The retirement market is enormous, and the real party is about to get started.”
Currently, US tax law treats every crypto transaction as a taxable event that requires reporting of even small profits. The proposed exemption would mirror existing rules that waive taxes on foreign currency gains under $200, reducing the administrative burden for users making low-value purchases.
If enacted, the exemption could accelerate Bitcoin’s role as a functional payment method rather than just an investment vehicle.
