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Trump Eyes Crypto for U.S. Retirement Plans – VC Calls It ‘Huge Unlock’
In a significant move that could potentially reshape the cryptocurrency market landscape, United States President Donald Trump is reportedly considering an executive order to open up retirement funds (401(k) plans) to alternative investments, including cryptocurrencies like Bitcoin and Ethereum.
According to a recent report by Financial Times, regulators would need to evaluate current hurdles preventing “alternative investments” from being included in managed retirement funds involving 401(k). This development has sparked immense excitement within the crypto community, with one venture capital partner labeling it as a ‘huge unlock’ for cryptocurrency.
Trump’s pro-crypto shift and goals appear to be aligned with this move. The Trump-era SEC has rolled back enforcement actions against major crypto platforms, while the Fed has relaxed previous strict access to the traditional banking sector. Even the U.S. housing market agency has endorsed Bitcoin and other crypto assets to be considered during mortgage applications.
Omar Kanji, an investment partner at crypto VC Dragonfly, believes that this move would unlock a massive $9 trillion in 401(k) funds for cryptocurrency investments. In his words, “Biggest unlock for crypto got buried with today’s announcements. US retirement assets sit at $43 trillion, with $9 trillion in 401ks. With Trump opening the floodgates, if crypto sees just a 1% allocation from 401ks, that’s ~$90 billion in fresh inflows.”
While this development has sparked widespread excitement within the cryptocurrency community, some may find the high volatility of cryptocurrencies to be a risk factor for their retirement plans.
It remains to be seen whether Trump will move forward with his plan, which could have significant implications for the crypto market if successful.
Source: ambcrypto.com
