Overview

• The executive order signed August 8 permits alternative assets—including cryptocurrencies, private equity and real estate—in 401(k) retirement plans.
• Bitcoin is poised to enter the accounts of nearly 90 million Americans, tapping into more than $12 trillion held in defined contribution funds.
• The order directs U.S. regulatory agencies to review and modernize ERISA-era rules to accommodate digital assets in retirement portfolios.
• Leading asset managers such as BlackRock, KKR, Blackstone and Apollo Global Management had lobbied for broader investment options in defined contribution plans.
• Experts praise potential diversification and higher returns but caution that cryptocurrencies carry significant volatility, low liquidity and opaque valuations.