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Key Insights:
- Trump supports Bitcoin access in U.S. 401(k) retirement plans
- White House proposes 0% capital gains tax on Bitcoin payments
- Small crypto transactions may become tax-exempt under new policy
Trump’s executive order could allow Bitcoin in U.S. retirement funds and exempt crypto from taxes.
Trump Greenlights Bitcoin for 401(k) Retirement Plans
President Donald Trump is preparing an executive order to allow Bitcoin and other cryptocurrencies in 401(k) retirement plans, according to a Financial Times report.
The initiative would direct regulators to study how Americans can invest in digital assets, metals, and private credit through their retirement accounts. The $8.9 trillion 401(k) market, traditionally dominated by stocks and bonds, may soon expand to include crypto.
A White House official said no final decisions have been made, but added, “President Trump is committed to restoring prosperity for everyday Americans and safeguarding their economic future.”
While the order has yet to be signed, sources briefed on the matter said it could be released this week. The proposal reflects Trump’s growing interest in leveraging Bitcoin for broader economic policy, particularly as he eyes the 2024 election cycle.
Tax-Free Crypto Payments on the Table
The White House also confirmed its support for eliminating capital gains taxes on Bitcoin transactions.
In a tweet on July 17, @rovercrc wrote, “BREAKING: TRUMP WHITE HOUSE SAYS IT SUPPORTS 0% CAPITAL GAINS TAX ON #BITCOIN PAYMENTS.”
In a separate post, @simplykashif added that Trump favors exempting small crypto transactions from taxes and will explore policy options to implement the change. While no legislation has been filed, the move could ease retail adoption of crypto payments in the U.S.
If enacted, the proposed exemption could align with the Keep Innovation in America Act, which aims to adjust outdated tax rules around digital assets. For now, every crypto transaction, regardless of size, is subject to capital gains, a burden critics argue hinders practical use.
$9 Trillion Market Eyes New Frontier
According to the Bitcoin Archive, Americans currently have over $9 trillion in savings from their 401(k). That capital is locked into legacy assets like mutual funds and ETFs. Including crypto would mark a structural shift in U.S. retirement planning.
Fidelity, a major retirement services provider with $5.9 trillion in assets under management, has already introduced a crypto-inclusive 401(k) account. North Carolina has also moved toward crypto exposure in its state retirement funds, proposing a 5% allocation into assets like Bitcoin.
Globally, the trend is catching on. Japan’s Government Pension Investment Fund and a United Kingdom-based pension scheme have considered Bitcoin for diversification.
This push follows the U.S. Labor Department’s decision in May to rescind previous guidance that restricted crypto in 401(k) plans during the Biden administration. The reversal gave employers more flexibility to include digital assets, paving the way for executive action.
Skepticism Lingers Around Official Confirmation
Despite widespread reports, the Trump administration insists that no move should be viewed as official unless confirmed directly by the president.
White House spokesperson Kush Desai stated, “No decisions should be deemed official, however, unless they come from President Trump himself.”
Trump has previously clashed with the Federal Reserve and regulatory agencies over digital assets. The current proposal to involve crypto in tax and retirement policy comes amid broader criticism of government overreach in financial markets.
The timing is strategic. Crypto markets are recovering, with Bitcoin recently outperforming the Nasdaq in five of the last six years, according to Curvo.
The messaging also targets younger voters. A recent survey found that 20% of Generation Z and Alpha view crypto as a viable retirement alternative.
A New Chapter in Crypto Legislation?
Analysts say the proposals could redefine Bitcoin’s role in mainstream finance if enacted. From speculative assets to retirement vehicles and payment methods, Trump’s platform may trigger a policy shift that forces federal agencies to revisit crypto frameworks.
Still, execution remains uncertain.
No executive order has been published, and existing legal constraints may require Congressional support. Regulatory clarity, including guidance from the Securities and Exchange Commission and the Internal Revenue Service, will be necessary to implement any sweeping change.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
