Trump executive order opens 401(k) plans to crypto
Experts say cryptocurrencies are now part of the global financial ecosystem, shaped by regulation and political changes.
US President Donald Trump signed an executive order to include cryptocurrencies and other alternative assets in 401(k) retirement accounts. The initiative aims to reduce regulatory and legal hurdles that have limited retirees from accessing higher returns and greater asset diversification.
The Secretary of Labour and SEC have been tasked with easing access to alternative investments in defined contribution plans. The order also calls for clarifying or revising existing rules to reduce industry legal uncertainties.
Despite the opportunity for higher returns, critics caution that these investments come with increased risks, less transparency, and higher fees than traditional retirement options.
Recent legislative activity reflects growing US government attention to digital assets. The Senate passed a bill regulating stablecoins, introducing reserve requirements and consumer protections.
Experts highlight that cryptocurrencies have evolved beyond speculative assets. They have become integrated into the global financial system and are sensitive to changes in regulatory and political landscapes.
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