Multiple media reports say that U.S. President Donald Trump is preparing to sign an executive order that will allow American retirement accounts to invest in and hold cryptocurrencies.
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The Financial Times was first to report on the move by President Trump that will allow 401(k) retirement accounts to invest in cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE), and possibly other alternative assets beyond stocks and bonds.
Other alternative assets that might be approved for retirement accounts include gold and private equity investments. President Trump will reportedly direct regulators to clear any hurdles to investing in crypto and other alternative assets. BTC rose above $120,000 in early trading on July 18 on reports that President Trump is planning to allow crypto in traditional investment accounts.
Bold Move
Until now, cryptocurrencies such as Bitcoin had been barred from 401(k) retirement accounts in the U.S. as they had been deemed too risky. However, President Trump was re-elected last year on a promise to make the U.S. the “crypto capital of the planet.”
Since returning to the White House in January of this year, Trump has enacted several pro-crypto policies. The president himself is a crypto investor. News of the addition of crypto to retirement accounts comes a day after the passage of the GENIUS Act cryptocurrency legislation in Congress, which is viewed as a milestone for digital assets.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on cryptocurrencies such as Bitcoin, so we’ll look instead at its three-month performance. As one can see in the chart below, the price of BTC has risen 38.70% in the last 12 weeks.
