Trump Crypto Executive Order and 401(k)s: What It Does and Does Not Change for Plan Sponsors

Trump Crypto Executive Order and 401(k)s: What It Does and Does Not Change for Plan Sponsors

A crypto executive order analysis explains what it does and does not change for retirement plan sponsors, compliance, and regulatory outlook.

A crypto executive order analysis explains what it does and does not change for retirement plan sponsors, compliance, and regulatory outlook.

Trump Crypto Executive Order and 401(k)s: What It Does and Does Not Change for Plan Sponsors

A crypto executive order analysis explains what it does and does not change for retirement plan sponsors, compliance, and regulatory outlook.

Published

December 14, 2025

Category

401(k)

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Signed on August 7, 2025, the Trump Crypto Executive Order directs federal agencies—including the Department of Labor (DOL) and the Securities and Exchange Commission (SEC)—to expand access to alternative assets, such as cryptocurrencies, in 401(k) plans. This move aims to democratize access to investment opportunities that were previously available mostly to certain pension funds and high-net-worth individuals. For ongoing updates and compliance strategies, see our 401(k) resources.

The DOL has returned to a neutral stance regarding specific investment types, neither endorsing nor disapproving of including cryptocurrencies in retirement plan menus. This neutrality means plan sponsors not only have more flexibility, but also greater responsibility, since fiduciary duties remain at the center of every decision.

The Short Answer: What the Executive Order Means for 401(k) Plans

The Trump Crypto Executive Order opens the door for plan sponsors to consider alternative assets, including 401(k) cryptocurrency investments, as part of their participant-directed investment options. However, it does not require sponsors to add these assets, nor does it relax core governance obligations.

Plan sponsors must still follow prudent process and act solely in participants’ best interests.

According to the DOL’s Compliance Assistance Release No. 2025-01, the department is "neither endorsing nor disapproving" of fiduciaries who choose to include crypto. This reflects a shift back to neutrality, but it doesn't signal an “all clear” for sponsors to add crypto without careful due diligence (cnbc.com).

As of late 2024, crypto assets comprised substantially less than 1% of the 401(k) market, emphasizing that these options are still emerging and the industry continues to approach them with caution.

What the Executive Order Actually Changes for Plan Sponsors

President Trump’s Executive Order instructs the DOL to reexamine its guidance on fiduciary duties for alternative assets in ERISA-governed 401(k) plans. It also directs the SEC to revise regulations that have historically limited participant access to private equity and digital assets.

"Today’s Executive Order directs the Department of Labor to level the playing field for all Americans saving for retirement by breaking down barriers to investment opportunities previously accessible only to certain pension plans and the very wealthy," said Deputy Secretary of Labor Keith Sonderling (dol.gov).

Despite these new opportunities, industry voices highlight that higher fees, illiquidity, and volatility present significant risks for retirement investors. However, the EO does not mandate that sponsors add crypto or other alternative assets. The DOL’s updated guidance is neutral and does not constitute an endorsement. Plan sponsors must still follow ERISA’s standards for prudent decision-making and risk assessment.

For a deeper look at how to approach crypto plan design without risking compliance, see How to Offer Crypto in a 401(k) (Without Breaking ERISA).

What Remains Unchanged: Fiduciary Duties and Governance

It’s a common question: Does the Executive Order change the fiduciary responsibilities for plan sponsors under ERISA?

The real answer: No. Fiduciaries must continue to act with prudence, loyalty, and care, regardless of new policy directions or asset types.

The DOL emphasized, "The Department is neither endorsing, nor disapproving of, plan fiduciaries who conclude the inclusion of cryptocurrency in a plan’s investment menu is appropriate" (cnbc.com). Plan sponsors will have to be extra careful to remember their fiduciary responsibilities for plan participants... It's going to be more complicated, said Lisa Gomez, former Assistant Secretary of Labor for Employee Benefits Security.

The standards for process, documentation, and ongoing monitoring remain as stringent as ever.

For sponsors considering whether to update their Investment Policy Statement (IPS) or committee processes, Adding Crypto to Your Investment Policy Statement (IPS): A Practical Guide offers actionable steps.

The Plan Sponsor’s Checklist: Prudence, Diligence, and Communication

Here’s how committees can align with best practices under the updated regulatory environment:

  1. Document Every Step: From initial research to committee deliberations, maintain thorough records that show a prudent process.

  2. Assess Suitability: Evaluate whether cryptocurrency investment risks align with your participant demographic and plan objectives.

  3. Educate Participants: Provide clear information about the volatility and unique risks of digital assets. Effective plan participant education on crypto is vital.

  4. Monitor and Review: Set a regular schedule to review investment performance, fees, and ongoing suitability.

  5. Maintain Diversification: Make sure that crypto assets, if included, are part of a broader, diversified menu.

Industry experts recommend reviewing and updating the IPS to address alternative assets and making participant education a priority, even if your plan does not immediately adopt crypto options.

Recent surveys found that 46% of Gen Z and 45% of Millennials wish they could access crypto in their retirement plans, making clear participant education all the more important.

For a breakdown of risk controls and eligibility considerations, see Risk Controls for Crypto in 401(k) Plans: Caps, Eligibility & Auto-Features.

Communicating Change: Framing Crypto and Alternative Assets for Leadership

Too often, sponsors focus on the expansion of investment options without conveying the real risks or limitations.

Key takeaway: Plan committees should be transparent about the volatility and speculative nature of cryptocurrencies and avoid promising high returns.

Communications should clearly state that adding crypto does not guarantee better outcomes and may introduce new compliance, liquidity, and valuation challenges. Compliance with ERISA standards does not inherently mean an investment is safe; it only means a prudent selection process was followed.

Providing educational materials and candid discussion of fees and regulatory considerations is the best way to help participants make informed decisions.

FAQs: Crypto, Compliance, and the Trump Executive Order

Do plan sponsors have to add crypto to their investment menu now?
No. The EO does not require any plan to add cryptocurrencies; it simply removes barriers for those who wish to consider them, subject to ERISA’s standards.

Does the EO change ERISA fiduciary duties?
No. Fiduciaries remain held to the same standards of prudence, loyalty, and diligence as before (cnbc.com).

How many plans are offering crypto post-EO?
As of December 2025, there is no comprehensive official DOL data on post-EO adoption rates. Industry reports indicate that most sponsors are cautious, awaiting further guidance before adding crypto. Growing participant interest, especially among younger workers, is fueling sponsor discussions, but most plans are awaiting further regulatory clarity before acting.

What best practices should sponsors follow when considering crypto?
Conduct detailed due diligence, update the IPS, provide participant education, and periodically review offerings for continued suitability.

For more detailed Q&A, visit our 401(k) resources.

What Employers Should Do Next

The bottom line: Stay informed. As federal policy and market trends shift, revisit your governance process and documentation to confirm you’re making prudent, compliant decisions about digital assets in retirement plans.

If your team is exploring new investment options or wants a compliance-first review, get started (for employers).

Compliance and Informational Footer

This content is for informational purposes only and is not legal, tax, investment, or compliance advice.

References

Compliance Assistance Release No. 2025-01. (2025, May 28). U.S. Department of Labor. https://www.dol.gov/newsroom/releases/ebsa/ebsa20250528

Crypto in 401(k) plans: Trump administration eases rules. (2025, May 28). CNBC. https://www.cnbc.com/2025/05/28/crypto-in-401k-plans-trump-administration-eases-rules.html

Fact Sheet: President Donald J. Trump Democratizes Access to Alternative Assets for 401(k) Investors. (2025, Aug. 7). White House. https://www.whitehouse.gov/fact-sheets/2025/08/fact-sheet-president-donald-j-trump-democratizes-access-to-alternative-assets-for-401k-investors

U.S. Department of Labor News Release: August 7, 2025. https://www.dol.gov/newsroom/releases/ebsa/ebsa20250807

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The accounts, strategies and/or investments discussed in this material may not be suitable for all investors. The appropriateness of a particular account or investment strategy will depend on an investor’s individual circumstances and objectives. Investors should carefully consider their investment objectives and risks, as well as charges and expenses of Basic Capital before investing. Basic Capital investments should only be part of your overall investment portfolio.

This website provides preliminary and general information about the Securities and is intended for initial reference purposes only. It does not summarize or compile all the applicable information. This website does not constitute an offer to sell or buy any securities. No offer or sale of any Securities will occur without the delivery of confidential offering materials and related documents. This information contained herein is qualified by and subject to more detailed information in the applicable offering materials.

Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. In addition, other financial metrics and calculations shown on the website (including amounts of principal and interest repaid) have not been independently verified or audited and may differ from the actual financial metrics and calculations for any investment, which are contained in the investors’ portfolios. Any investment information contained herein has been secured from sources that Basic Capital believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefore.

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