Bitcoin 401(k)s thrill crypto investors but carry serious risks

US investors can now include Bitcoin in their 401(k) plans, but some observers are concerned about the risks they pose to their retirement.

US President Donald Trump signed an executive order on Aug. 7, allowing crypto in 401(k) retirement plans. The crypto industry has called the move a win for adoption, but investment professionals warn it comes with significant risk. 

The order “Democratizing Access to Alternative Assets for 401(k) Investors” directed US financial regulators to expand access to crypto and private companies in 401(k) plans. 

The 401(k) employee-sponsored investment scheme is one of the most popular retirement plans in the US. As of 2024, 401(k) plans held $8.9 trillion in assets. As such, it would represent a huge source of demand for cryptocurrencies and could send prices skyrocketing.

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