Key Takeaways
Trump’s plan to open retirement funds to crypto could further boost the market, according to a VC partner. This could further cement the president’s pro-crypto agenda.
After making its way into the U.S. public exchanges via spot Bitcoin [BTC] and Ethereum [ETH] ETFs, the next stop for crypto could be retirement markets.
U.S. President Donald Trump is reportedly mulling an executive order to open up retirement markets (401k plans) to alternative investments, including crypto and gold, per a Financial Times report.
The report added that regulators would need to evaluate current hurdles that prevent ‘alternative investments’ from being included in managed retirement funds involving 401(k).
Trump’s crypto agenda: A radical shift
Currently, retirement plans mostly focus on index funds and stocks as an investment menu. If Trump’s plan is effected, a portion of employees’ retirement can be directed into crypto investments too.
Interestingly, the update was expected. In May 2025, the Department of Labor rescinded a Biden-era warning to fiduciaries to ensure ‘extreme care’ when engaging with crypto in 401(k) plans.
Part of the regulator’s statement read,
“We’re rolling back this overreach and making it clear that investment decisions should be made by fiduciaries, not D.C. bureaucrats.”
In addition to crypto and gold, the FT report added that infrastructure bonds, private equity, and more could also be considered as alternatives in the retirement menu.
The update also aligns with Trump’s broader pro-crypto shift and goals.
The Trump-era SEC has rolled back enforcement actions against major crypto platforms, and the Fed has relaxed previous strict access to the traditional banking sector.
Even the U.S. housing market agency has endorsed Bitcoin and other crypto assets to be considered during mortgage applications.
A legislative proposal has been made to make it permanent.
Reacting to the update, Omar Kanji, investment partner at crypto VC Dragonfly, called it a ‘huge unlock’ for crypto. He added,
“Biggest unlock for crypto got buried with today’s announcements. US retirement assets sit at $43T, with $9T in 401ks. With Trump opening the floodgates, if crypto sees just a 1% allocation from 401ks, that’s ~$90B in fresh inflows”
Source: Source: Omar/X
Although it’s a positive move, others may find the high volatility in crypto a risk factor for their retirement plans. It remains to be seen whether Trump will move forward with the plan.
