US Representative Seeks to Codify Trump’s 401(k) Crypto Executive Order

TLDR

• Rep. Troy Downing introduces a bill to turn Trump’s 401(k) crypto executive order into law.
• The bill aims to include cryptocurrency and other alternative assets in 401(k) retirement plans.
• Trump’s executive order allows fiduciaries to assess crypto and other alternative investments for retirement funds.
• Lawmakers urge the SEC to expedite the implementation of Trump’s order to expand retirement investment options.
• The push to include crypto in 401(k) plans has gained support despite concerns about market volatility.

Rep. Troy Downing, a Republican lawmaker, has introduced a bill to make President Donald Trump’s executive order regarding 401(k) crypto law. The bill, presented in the House Financial Services Committee, would codify Executive Order 14330. This order permits alternative assets, including cryptocurrencies, to be included in 401(k) retirement accounts.

Trump’s Executive Order on 401(k) Crypto

Trump’s executive order, issued on August 7, 2023, allows American retirement plans to include alternative assets. The order encompasses a range of investments, including real estate, private market assets, and digital assets such as cryptocurrency. It mandates that fiduciaries managing retirement funds assess the inclusion of these assets in 401(k) plans. However, executive orders lack permanence, as future administrations or courts can overturn them. To ensure permanence, Congress must pass a bill that supports the order.

The order specifies that the Department of Labor, Securities and Exchange Commission (SEC), and the Treasury Secretary must review and issue guidance for 401(k) plans within six months. This would set the stage for integrating crypto assets into retirement portfolios. Many financial experts view the inclusion of digital assets in 401(k)s as a significant shift in investment strategies.

Impact of Trump’s 401(k) Crypto Push

The proposal to include alternative assets, such as cryptocurrencies, in retirement plans has gained significant momentum. In May, the U.S. Department of Labor withdrew previous guidance that had warned against including crypto in 401(k)s. This shift paves the way for greater acceptance of digital currencies in long-term retirement planning.

In September, nine lawmakers urged the SEC to accelerate the implementation of Trump’s 401(k) crypto executive order. They argued that millions of Americans are restricted from investing in alternative assets, including cryptocurrencies. As a result, these lawmakers want to help people secure better retirement options with a broader array of investment choices.

Despite concerns about the volatility of cryptocurrencies, many in the crypto space are optimistic about their future in retirement funds. Experts believe that allowing crypto in 401(k) plans will attract billions in new investments.

The push to integrate Trump’s executive order on 401(k) and crypto into law could drive significant changes in the US retirement system. With $9.3 trillion held in 401(k) accounts, this policy shift could impact millions of Americans.

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