U.S. President Donald Trump plans to sign an executive order that will allow cryptocurrency investments such as Bitcoin (BTC) and Dogecoin (DOGE) in U.S. retirement accounts.
The White House says the executive order will direct the U.S. Secretary of Labor to review fiduciary guidance on private market investments in 401(k) defined-contribution plans, which are similar to RRSPs in Canada.
The move paves the way for crypto and private equity investments to be held in American retirement accounts for the first time.
Until now, crypto such as Bitcoin was viewed as too risky for 401(k) accounts and the government sought to shield retirees from volatile digital assets.
Private market assets have also been excluded from 401(k)s because their high fees, lack of transparency, and long lock-up periods make them riskier investment vehicles.
Some analysts are warning that adding investments such as crypto and private equity to retirement accounts could spell disaster if a financial crisis or other negative event hits markets.
Americans collectively hold about $8.7 trillion U.S. of assets in 401(k) retirement accounts, according to data from the Investment Company Institute.
Despite the warnings, asset managers are already moving to offer and promote both crypto and private equity investments in 401(k) accounts.
BlackRock (BLK), the world’s largest asset manager, plans to launch a 401(k) target date fund in early 2026 that will include a 5% to 20% allocation to private equity investments.
Bitcoin, the largest cryptocurrency by market capitalization, is currently trading at $116,200 U.S., having risen 24% this year.
