Trump Opens 401(k) Plans To Crypto, Cracks Down On Crypto Banking Discrimination

President Donald Trump signed two executive orders on Thursday advancing the role of digital assets in the U.S. financial system. One order allows 401(k) retirement plans to include cryptocurrencies, while the other targets what the administration calls discriminatory banking practices against crypto firms.

The first order directs the Department of Labor to reassess its guidance, which currently restricts alternative asset exposure in employer-sponsored retirement plans.

The move, aimed at revising regulatory interpretations under the Employee Retirement Income Security Act (ERISA), also instructs the Securities and Exchange Commission and Treasury Department to consider regulatory updates that could expand retail access to digital assets through accredited investor pathways.

This directive builds on Trump's earlier crypto-related actions, including a strategic digital asset reserve and a national initiative to promote U.S. crypto leadership.

Hashdex's Gerry O'Shea described the latest order as an opportunity for retirement plan sponsors to engage digital asset experts on safe and structured inclusion of crypto in long-term portfolios.

In a second executive order, Trump moved to prohibit federal regulators from using “reputational risk” as a reason to block or discourage banks from servicing crypto companies.

This language, used by agencies like the Federal Reserve, has come under scrutiny by lawmakers and the crypto industry, who argue it has been misused to justify account closures and restrict banking access.

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Critics have long argued that such actions amount to a form of "Operation Choke Point 2.0," a reference to a 2013 initiative that limited financial services for industries seen as risky.

Trump's new order seeks to eliminate that discretion, aligning with prior pledges by the Federal Reserve, OCC, and FDIC to stop using reputational risk as a supervisory standard.

Republican lawmakers praised the order.

House Financial Services Chair French Hill (R-AR) called it "an important step" toward protecting Americans from politically motivated financial discrimination.

Senator Cynthia Lummis (R-NY) added that it brings "transparency and accountability" to what she characterized as an overreach under the Biden administration.

Both orders underscore a broader policy pivot under Trump aimed at normalizing crypto as part of mainstream financial systems.

While the Biden-era Labor Department had cautioned against speculative risks in retirement crypto allocations, Trump's administration is instead positioning digital assets as central to innovation and investor choice.

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