Trump to issue executive order opening $9T retirement market to crypto investments
In a move that has sent shockwaves through the financial industry, former US President Donald Trump is set to sign an executive order that would open up the massive $9 trillion US retirement market to cryptocurrency and other alternative investment options.
According to reports, the forthcoming executive order will instruct regulatory bodies to identify and eliminate any barriers that currently prevent plan administrators from offering these assets in professionally managed retirement portfolios. This drastic shift would effectively allow millions of Americans to invest their retirement savings in digital currencies like Bitcoin and Ethereum, as well as gold, private equity, and other alternative investments.
The move is a significant departure from the previous administration’s stance on crypto regulation. In May, the Department of Labor reversed a Biden-era rule that discouraged plan administrators from offering crypto exposure. This newfound openness has been reinforced by the passage of three Trump-backed crypto bills: the GENIUS Act, which aims to establish a stablecoin framework; the Clarity Act, which defines who can legally issue stablecoins; and the Anti-CBDC Act, which prohibits the Federal Reserve from launching a central bank digital currency.
While proponents of this move argue that it will provide greater investment opportunities for Americans, critics have expressed concerns about the risks associated with these alternative investments. Critics warn that shifting savings into higher-fee, less-liquid assets like private equity and digital tokens could expose retail investors to greater risk. Unlike public stocks and bonds, these assets are harder to value, more difficult to trade, and offer less transparency, potentially leaving savers vulnerable.
The potential implications of this executive order are far-reaching, with the potential to reshape how Americans invest for retirement. It remains to be seen whether the new administration will continue to support or rescind this executive order in the future.
Source: cryptobriefing.com