Core Insights - The U.S. Department of Labor (DOL) is reevaluating guidance on cryptocurrency investments in retirement plans following an executive order from former President Trump [3][4] - The DOL has rescinded a previous warning that advised caution regarding cryptocurrency options in 401(k) plans, indicating a neutral stance on including such investments [4] - A new bill introduced by U.S. Rep. Troy Downing aims to codify Trump's executive order, facilitating investments in private equity, real estate, and cryptocurrency within 401(k) retirement plans [6] Group 1 - Trump's executive order on August 7 directed the DOL to reassess investment guidance and for the SEC to revise relevant regulations [3] - The DOL's Employee Benefits Security Administration previously warned fiduciaries to exercise "extreme care" before adding cryptocurrency to investment menus, citing risks like fraud and volatility [4] - The American Securities Association supports Downing's bill, stating it would expand investment opportunities for retirement savers [5] Group 2 - The Retirement Investment Choice Act aims to democratize access to alternative investments for 401(k) investors, potentially enhancing financial security for Americans [6] - Downing emphasized the transformative potential of alternative investments for retirement savings and praised Trump's leadership in this initiative [6]

U.S. Representative Troy Downing will introduce the Retirement Investment Choice Act this Tuesday, aiming to codify former President Trump’s executive order that allows 401(k) retirement plans to invest in cryptocurrencies and private equity. The bill has reportedly received joint support from four Republican lawmakers. https://t.co/wOkU0d3aQu ...

Core Insights - A bipartisan coalition of nine House lawmakers is urging the SEC to act on President Trump's directive to integrate cryptocurrency into the U.S. retirement system, specifically the $12 trillion 401(k) market [1][4]. Group 1: Legislative Actions - Lawmakers have sent a letter to SEC Chair Paul Atkins, requesting amendments to existing rules to implement Executive Order 14330, which aims to expand investment options in 401(k) plans [2][5]. - The executive order directs federal agencies to revisit guidance and remove barriers that have historically excluded alternative assets like Bitcoin from retirement plans [5][6]. Group 2: Market Overview - The U.S. retirement system currently holds approximately $12.1 trillion in 401(k) accounts, serving over 90 million Americans [3][4]. - Historically, 401(k) plans have been limited to traditional asset classes such as stocks, bonds, and mutual funds under the Employee Retirement Income Security Act (ERISA) [3][5]. Group 3: Potential Impact of Crypto - The letter from lawmakers emphasizes that broader diversification, including alternative assets, could enhance retirement outcomes for investors [5][6]. - Crypto has shown strong performance over the past decade, surpassing traditional assets like equities, bonds, and gold, which has led to increased interest in digital assets as retirement options [7]. Group 4: Future Expectations - If the SEC's guidance is implemented, it could mark a significant step toward mainstream adoption of cryptocurrency in the U.S. retirement market [8]. - Analysts anticipate that new rules could be established by early 2026, potentially allowing Bitcoin ETFs and other regulated digital asset products to be included in retirement portfolios [8].

Trump eyeing executive order to allow crypto, gold, and private equity in 401(k) retirement plans: report https://t.co/EY5StSJElg ...