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Trump Eyes Crypto for U.S. Retirement Plans – VC Calls It ‘Huge Unlock’
U.S. President Donald Trump is reportedly considering an executive order to open up retirement markets, including 401(k) plans, to alternative investments such as crypto and gold, according to a Financial Times report. This potential move could unlock massive opportunities for the digital asset market.
If implemented, this plan would allow a portion of employees’ retirement funds to be invested in cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), which are currently not available options for these types of plans. This update aligns with Trump’s overall pro-crypto stance, as seen in his administration’s relaxed regulatory approach towards the digital asset market.
The potential impact of this move is significant, as it could see a substantial influx of fresh capital into the crypto space. Omar Kanji, an investment partner at Dragonfly VC, described the news as a “huge unlock” for crypto. He further emphasized that if just 1% of 401(k) assets are allocated to crypto, it would result in $90 billion in new inflows.
The move comes after the Department of Labor rescinded a warning by the previous administration cautioning fiduciaries to exercise extreme care when engaging with crypto in retirement plans. This change in stance creates an opportunity for regulators and the crypto industry to come together and find ways to integrate digital assets into the traditional investment landscape.
In addition to cryptocurrency, other alternative investments such as infrastructure bonds and private equity could also be considered for inclusion in these retirement plans. The potential impact of this shift cannot be overstated, as it would allow millions of Americans to diversify their portfolios and potentially increase returns on their investments.
While some may express concerns over the volatility inherent to crypto investments, others see this as a long-awaited chance to bring more transparency and choice to the traditional financial system.
Source: ambcrypto.com
