In a historic move for both cryptocurrency and retirement planning, Bitcoin price skyrocketed above $120,000 following reports that President Donald Trump is preparing to sign an executive order that would expand 401(k) retirement investment options to include cryptocurrencies and other alternative assets.
Executive Order May Approve Crypto for Retirement Accounts
According to sources familiar with the matter, the White House is finalizing an executive order that would direct regulators to eliminate restrictions on including digital assets in retirement portfolios. The directive would apply to 401(k) plans, potentially opening the door for Americans to invest in Bitcoin, Ethereum, gold, private equity, and other non-traditional assets through their retirement savings.
The order could be signed as early as this week, signaling a major shift in the U.S. government’s approach to crypto adoption.
This executive move aims to modernize retirement investing, allowing for more diversification and better alignment with younger investors’ preferences. It comes at a time when traditional assets like stocks and bonds have shown volatile performance, increasing demand for inflation-resistant and high-growth alternatives.
Bitcoin Price Breaks $120,000 on Policy Momentum
The crypto market responded swiftly to the news. Bitcoin surged above the $120,000 mark, marking a new multi-month high. Traders and analysts credited the rally to anticipation of institutional adoption and the potential influx of long-term capital from retirement accounts.
“Allowing crypto in retirement portfolios legitimizes digital assets as a core part of wealth building,” one analyst noted.
Altcoins such as Ethereum and Solana also recorded strong gains, benefiting from overall market optimism surrounding policy support.
Impact on Financial Markets and Retirement Planning
This potential policy shift could reshape the U.S. retirement landscape, giving financial advisors and asset managers new tools to diversify client portfolios. While some critics warn of the risks associated with volatile assets like Bitcoin, supporters argue that regulatory oversight and clear guidelines could mitigate long-term concerns.
If finalized, this policy could make the U.S. one of the first major economies to endorse crypto as a retirement asset.
What’s Next?
Markets will be closely watching the White House for confirmation. If President Trump follows through this week, the crypto sector could see accelerated institutional inflows, while retirement planning in America may enter a new era of diversification and innovation.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.