Retirement savings, now in cryptocurrency
On August 7, 2025, President Donald Trump signed a groundbreaking executive order that changes the rules for U.S. 401(k) retirement plans. Americans are now officially allowed to allocate part of their retirement savings to alternative assets — including Bitcoin, Ethereum, private equity, and real estate. Until now, such options were largely off-limits to ordinary workers.
Market reaction
The announcement had an immediate impact on the markets:
- Bitcoin jumped about 2%, reaching $117,300.
- Ethereum surged more than 5%, climbing above $3,850.
Analysts, including Tom Dunleavy of Varys Capital, believe that even if just 1–10% of monthly 401(k) contributions are directed into crypto, it could mean billions of dollars in fresh capital entering the market. Galaxy Digital’s Mike Novogratz called it “a massive pool of money that could reshape the industry.”
When will it take effect?
Despite the headline-grabbing move, actual implementation will take time. Federal agencies will need to revise ERISA regulations and design safe financial products for retirees. Experts warn that cryptocurrencies are highly volatile — meaning the potential for significant gains comes with equally significant risks for long-term savings.
Why it matters
For the first time in history, the world’s largest retirement savings market will open its doors to cryptocurrencies. If the rollout goes as planned, Bitcoin and Ethereum could find their way into millions of retirement portfolios, pushing crypto firmly into the financial mainstream.
