
Trump eyes crypto for U.S. retirement plans – VC calls it ‘huge unlock’
The United States could be on the cusp of a significant shift in its approach to retirement funds, as President Donald Trump considers an executive order that would allow 401(k) and other retirement accounts to invest in alternative assets such as cryptocurrencies, gold, and private equity.
This potential move has been met with enthusiasm by some in the crypto community, with Omar Kanji, investment partner at VC Dragonfly, describing it as a “huge unlock” for digital currencies. In an interview, Kanji noted that if just 1% of retirement funds were to be allocated to cryptocurrency investments, this would translate into a staggering $90 billion influx of fresh capital.
The move is significant in light of the current market dynamics. The United States has over $43 trillion worth of retirement assets, with approximately $9 trillion tied up in 401(k) plans alone. This massive pool of funds could potentially be unleashed onto the crypto markets, further fueling an already-booming sector.
It remains to be seen whether Trump will ultimately decide to move forward with this proposal. However, if successful, it would mark a significant shift in the traditional investment landscape and open up new opportunities for investors seeking alternative returns.
The news has sparked a lively debate, with some expressing concern over the high volatility associated with cryptocurrency investments. Others have hailed the potential benefits of diversifying retirement portfolios, citing the lackluster performance of traditional assets such as stocks and bonds in recent years.
In any case, the prospect of unlocking this massive pool of capital is likely to send shockwaves through the crypto markets and beyond.
Sources: Omar Kanji, investment partner at VC Dragonfly
Source: ambcrypto.com