Cryptocurrency Bitcoin swings back upwards.
In a significant policy shift, President Donald Trump signed an executive order on August 7, 2025, aimed at democratizing access to alternative investments, including digital currencies, in U.S. private retirement systems like 401(k) plans.
The order, called "Democratizing Access for 401(k) Investors," directs the U.S. Department of Labor (DOL) to facilitate the inclusion of alternative assets such as digital currencies, private equity, and real estate in U.S. private retirement systems. This executive order rescinds the prior Biden administration’s 2022 guidance that urged extreme caution on crypto in retirement plans and returns to a more neutral standard that treats digital assets like any other investment under ERISA fiduciary principles.
The DOL has since issued Compliance Assistance Release No. 2025-01, removing restrictions that went beyond traditional fiduciary duties and directing fiduciaries to assess digital currencies and other alternative assets prudently and contextually, without blanket prohibitions. However, no explicit endorsement of crypto is made; rather, plan fiduciaries must analyze risks and suitability similarly to other investments.
The policy reflects a broader push to expand retirement investment options to more Americans, potentially offering better diversification and returns. However, some experts caution that many alternative investments might not be suitable for average investors.
The DOL is also working on further regulations to implement this policy, including fiduciary "safe harbors" to reduce litigation risks for plan fiduciaries investing in alternative assets.
Meanwhile, the crypto market is experiencing a surge, with Bitcoin surging over the weekend and climbing back above the $120,000 mark on Monday morning. Its current price stands at $122,097. This increase, in turn, boosts the marketing power of the digital asset.
The increased interest in Bitcoin is also reflected in the growing involvement of institutional investors, such as banks. More than half of the 25 largest U.S. banks are currently developing Bitcoin products for their clients. Among them are Citigroup, Goldman Sachs, Wells Fargo, and Morgan Stanley.
Investing in Bitcoin or Ethereum has never been easier, with the "Bitcoin Direct ETP" and "Ethereum Direct ETP" from NxtAssets allowing for investing in these digital currencies without a wallet. These ETPs are issued by Boerse Medien AG, which has an indirect stake in nxtAssets GmbH.
Last week, the iShares Bitcoin ETF from Black Rock saw new inflows of around $680 million in just two days. This influx further highlights the growing optimism among investors about Bitcoin.
Trump's actions are not only boosting sentiment in the crypto market but also paving the way for digital assets in American retirement plans. The all-time high set in July for Bitcoin is now back within reach.
- The executive order signed by President Donald Trump on August 7, 2025, directs the DOL to facilitate the inclusion of digital currencies, such as Bitcoin, in U.S. private retirement systems, which could potentially make investing in technology-based assets like digital currencies more accessible for Americans.
- With Trump's policy shift encouraging the inclusion of digital currencies in retirement plans, financial institutions like Citigroup, Goldman Sachs, Wells Fargo, and Morgan Stanley are increasingly involved in developing Bitcoin products, indicating a growing interest in technology-driven investments like Bitcoin and Ethereum.
