US President Donald Trump is preparing an executive order to permit cryptocurrencies and alternative investments, such as gold and private equity, in the United States retirement market.

The Financial Times reports this development based on sources familiar with the matter.

If enacted, the executive order would direct regulators to assess and eliminate barriers that currently prevent these investments from being included in professionally managed 401(k) retirement funds.

This initiative aligns with recent changes by federal agencies toward allowing cryptocurrency in retirement accounts.

In May, the Department of Labor reversed previous guidance that advised caution regarding cryptocurrencies in investment strategies.

This change was based on the view that earlier restrictions represented overreach by the Biden administration.

Additionally, lawmakers have attempted to broaden acceptable retirement investments to encompass digital assets. However, efforts like the Retirement Savings Modernization Act in 2022 did not gain momentum.

The executive order, if signed, could alter retirement investment policy in the United States.

🔗 Source: The Block

🧠 Food for thought

1️⃣ State-level crypto experimentation has already begun

Trump’s proposed executive order would follow a pattern of state-level experimentation with cryptocurrency in retirement portfolios that’s already underway.

Several states have moved ahead without waiting for federal guidance, with the State of Michigan Retirement System already holding approximately $6.6 million in Bitcoin ETF and $10 million in Ethereum ETF investments.

The State of Wisconsin Investment Board has disclosed $163 million worth of spot bitcoin ETF holdings according to the original article.

North Carolina represents the emerging legislative trend, with lawmakers introducing bills that would allow up to 5% of certain retirement fund balances into digital assets and create an independent investment authority to evaluate suitable cryptocurrencies 1.

These state-level moves signal a growing acceptance of digital assets within traditional institutional investment frameworks, despite ongoing debates about their appropriateness in retirement portfolios.