#打榜优质内容# A Brief Discussion on Trump's Executive Order - Allowing 401(k) Investments in Crypto Assets

On Thursday, U.S. President Trump took another significant action by signing an executive order directing the Department of Labor to pave the way for 401(k) retirement plans to invest in Crypto Assets, private equity, and other alternative assets. This is not only another crypto-related policy during Trump's administration but may also inject hundreds of billions of dollars into the crypto market, accelerating the mainstream adoption of digital assets.

1. Core of the Executive Order:
Open the floodgates for retirement funds to invest in Crypto Assets
The key actions of this executive order include:
Breaking Investment Restrictions: Requesting the Department of Labor to revise rules to allow 401(k) plans (the most mainstream retirement savings tool in the United States, covering approximately 80 million workers, with a total scale exceeding $8 trillion) to include Crypto Assets as an investment target;
Inter-departmental collaboration: directing the SEC, the Treasury Department, and other agencies to cooperate in implementation, which may involve the formulation of detailed rules regarding Crypto Assets valuation, custody security, etc.;
Expand the scope of investors: Consider adjusting the definition of "qualified investors" to allow more ordinary people to participate in crypto investments through retirement plans, lowering the threshold.
This policy echoes Trump’s previous push for the "Establishment of Bitcoin Strategic Reserves," continually reinforcing his vision of "making the United States the capital of Crypto Assets."

II. Market Impact: How much incremental value can $8 trillion in retirement funds bring to Crypto Assets?
401(k)'s planned funding scale is known as a "massive reservoir". Even if only 1% is allocated to crypto assets, it will bring an increment of 8 billion USD, which is equivalent to about 3% of the current total market value of Bitcoin (calculated at the current price of Bitcoin).
The specific impacts may be reflected in:
Institutional funds are entering the market at an accelerated pace: The allocation demand from retirement plans will compel traditional financial institutions (such as Fidelity, Vanguard, and other asset management giants) to launch crypto-related products, such as Bitcoin ETFs and Crypto Assets portfolio funds;
Market stability improvement: Retirement funds focus on long-term allocation, and their entry may reduce short-term volatility in the Crypto Assets market, decreasing the characteristics of a "speculative market";
Reshaping Crypto Assets Valuation: Inclusion in retirement plans means that Crypto Assets receive "long-term asset" certification, which may attract more conservative investors and elevate the valuation center of mainstream Crypto Assets.
3. Disputes and Challenges: Risk Control is Key
Despite the policy sending positive signals, the market still worries about two major issues:
Volatility Risk: The annual volatility of prices for Crypto Assets like Bitcoin often exceeds 60%, while retirement funds pursue stable appreciation. How can one balance returns and risks? The Department of Labor may require limits on the proportion of Crypto Asset allocations (e.g., a single fund not exceeding 5%) or only allow investments in highly compliant targets (e.g., Bitcoin, Ethereum);
Lack of regulatory guidelines: There are currently no uniform standards for the custody, valuation, anti-money laundering, and other aspects of Crypto Assets. If the rules are not完善, it may lead to disputes over the security of funds. For example, how does the 401(k) plan to ensure that Crypto Assets are not stolen by hackers? How will it address the risks of exchange failures?

However, the Trump administration clearly prefers a "first open then regulate" approach, breaking down policy barriers through executive orders and then forcing regulatory details to be implemented, which is consistent with the overall idea of the United States promoting crypto innovation.
From Bitcoin strategic reserves to the 401(k) plan being unleashed, the Trump administration is gradually integrating Crypto Assets into the core of the U.S. financial system. When retirement funds, considered the "most conservative money," begin to flow into the crypto market, it not only signifies that digital assets have crossed a critical threshold of mainstream acceptance but could also reshape the global flow of crypto capital. Moving forward, the pace of the Department of Labor's rule-making and the rollout speed of institutional products will determine how lively this "retirement funds entering crypto" feast can be.