President Donald Trump of the United States is poised to authorize an executive order that will potentially incorporate cryptocurrencies, private equity, and real estate into 401(k) plans, as reported by Bloomberg.
Although specific details of the order have not been disclosed, individuals informed on the subject relayed to Bloomberg that the directive would instruct the Department of Labor to relax fiduciary constraints currently discouraging plan administrators from including these investment options.
Following this announcement, Bitcoin (BTC) surged from $114,900 to $15,670 in just one hour, with market participants viewing the development as favorable for the long-term integration of crypto assets.
Despite not reaching the significant $120,000 milestone it temporarily achieved last month, this surge has renewed speculative interest, evidenced by increased open interest and trading volume in derivatives markets.
As 2024 drew to a close, there were apprehensions about adding digital currencies to retirement portfolios, with the Department of Labor reportedly needing more data to regulate the increasing trend of crypto assets.
Read more: Bitcoin’s Stability Reaches Levels Unseen Since October 2023
