Cryptocurrency integration into pension funds may be simplified due to Trump's recent Executive Order.
The U.S. President Donald Trump is reportedly considering an executive order that could make it easier for pension plans to include cryptocurrencies. This move, if definitively approved, could gradually direct more pension capital towards cryptocurrencies.
The inclusion of cryptocurrencies in retirement plans like 401(k)s would require administrators to adopt reliable asset custody solutions, ensure traceability for audits, and create low-cost products. However, the road to widespread adoption is fraught with regulatory hurdles and compliance risks.
The Department of Labor (DOL) rescinded the 2022 guidance that urged "extreme care" due to crypto’s volatility, fraud risk, valuation difficulty, and custody concerns. Instead, the DOL now promotes a "facts and circumstances" approach aligned with general ERISA principles. Despite this more open regulatory environment, plan fiduciaries remain responsible for thoroughly evaluating crypto investments.
The August 7, 2025 executive order directs the DOL and SEC to issue rules or guidance, potentially including safe harbors, to clarify fiduciary duties around offering cryptocurrencies, private equity, and real estate in 401(k) plans. The order aims to reduce the "burdensome lawsuits" that have historically discouraged fiduciaries from including such assets.
The ultimate inclusion of cryptocurrencies will depend on how the DOL and SEC implement the executive order. Clear, practical rules or safe harbor provisions are crucial to mitigate fiduciary risk and litigation concerns related to crypto's distinctive risks and illiquidity relative to traditional investments.
Product teams at major managers like Fidelity, BlackRock, or T. Rowe Price may start with pilot projects regarding custody and compliance before offering broader access to investors. The BlackRock Bitcoin Trust serves as a more familiar and regulated entry point for both institutional and retail investors.
The inclusion of cryptocurrencies in retirement plans would allow everyday savers to invest in cryptocurrencies while enjoying the tax benefits already available. However, there is a real risk of legal action if the value of cryptocurrency investments drops in retirement plans. Plan sponsors and managers would still be bound by ERISA rules, which require trustees to act prudently and in the best interest of participants.
As of now, Bitcoin has reached $116,800, up 3.0% in the last 24 hours, and Ethereum has risen by over 6%, reaching $3,900. These instruments demonstrate the growing demand for crypto exposure. Regulatory clarity and practical solutions to address the unique challenges of including cryptocurrencies in retirement plans could pave the way for broader adoption in the future.
[1] Department of Labor. (2025). Compliance Assistance Release No. 2025-01. [2] Investopedia. (n.d.). 401(k) Plan. [3] U.S. Securities and Exchange Commission. (n.d.). ERISA. [4] The White House. (2025, August 7). Executive Order on Encouraging Competition in the American Economy. [5] CNBC. (2025, August 7). Trump signs executive order aimed at spurring competition in the American economy.
Investing in cryptocurrencies through personal-finance vehicles like 401(k) plans requires technology solutions for asset custody and regulatory compliance. As the U.S. Securities and Exchange Commission (SEC) and Department of Labor (DOL) work towards providing clear, practical rules or safe harbors, major financial institutions like Fidelity and BlackRock are considering pilot projects to manage the unique challenges of offering cryptocurrencies in such plans.
