Trump to sign Executive Order that makes 401 (K) Crypto investment possible

Trump to sign Executive Order that makes 401 (K) Crypto investment possible

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President Donald Trump is planning to sign an executive order with which American 401 (K) S can invest in crypto, real estate and private equity.

According to a Bloomberg report This called sources that are familiar with the issue, the executive order will instruct the labor department to erase a path for 401 (K) s to invest in those alternative assets.

Labor secretary Lori Chavez Dederemer will have to re-visit the guidance of pension income security employees and coordinate with agencies such as the Securities and Exchange Commission (SEC) and Treasury Department on possible rule changes to allow the investments.

Americans could soon be exposed to Bitcoin ETFs

The executive order can also unlock exposure to spot Bitcoin ETFs (Exchange-Trade Funds) for 401 (K) investors.

Until now, institutional investors have increased their crypto exposure, with Spot BTC ETFs who have registered more than $ 53.7 billion since their launch in January last year, data from Farsheid -investors to show.

However, Everyday savers are limited due to the uncertainty of the regulations, volatility problems and fiduciary risk.

About 71.5 million Americans have 401 (K) pension plans and from September last year the market amounted to $ 8.9 trillion. As such, the executive order could be an important step in the direction of mainstream crypto -acceptance that channel billions of dollars in the digital assets market.

However, before that can happen, planning sponsors will probably still have to assess volatility, custody and valuation risks.

The possible executive command of Trump comes after the American labor department imposed the guidance of Biden Administration that has imposed limits on the pension plans of 401 (K).

We make crypto regulatory progress

If Trump signs the executive order, this would be the latest pro-Crypto movement through his administration.

Since he concerns the White House in January, Trump has signed the Genius ACT in the law, which establishes guidelines for Stablecoin -emendent in the US to follow.

The SEC has also unveiled its “Project Crypto” initiative, which wants to alleviate the license requirements for American cryptom manufacturers.

Earlier this week, the US Commodity Futures Trading Commission (CFTC) also started its “crypto sprint” initiative, when it said that it will start exploring the spotcrypto -trade on futures exchanges.

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