President Donald Trump is reportedly strengthening his pro-crypto agenda with plans to expand access to trillions from retirement funds and facilitate taxation on daily use of crypto.
According to a June 17 report by the Financial Times, sources familiar with the matter said the president could soon issue an executive order allowing a 401(k) retirement plan that would allow investments in cryptocurrency, gold and private equity.
This initiative marks a major shift in US retirement policy. Traditionally, the 401(k) plan is limited to traditional assets such as stocks and bonds. By including Crypto and other alternatives, the White House aims to modernize its investment options and take advantage of the growing appeal of digital assets.
A 401(k) is a tax resignation plan in which US employees donate a portion of their wages to investment accounts. The new executive order is expected to instruct federal regulators to assess and amend existing rules that currently restrict access to alternative assets.
If implemented, this move could lead to policies that support direct crypto ownership, ETF exposure, and investment in blockchain-centric businesses.
Omar Kanji, a partner at Crypto Venture Firm Dragonfly, called the development the “largest unlock” of the digital asset sector.
He pointed out:
“The US retirement assets are $43 trillion, and $401 trillion will be $9 trillion. When Trump opens the Floodgate, if the Cry is looking at 1% allocation from 401ks, that’s $9 billion with a fresh influx. The retirement market is huge and the actual party starts.”
Bitcoin tax relief
In another development, the Trump administration is investigating a “minimal” exemption for small crypto transactions. This removes capital gains tax liability for minor purchases made on digital assets such as Bitcoin.
White House spokesman Karoline Leavitt confirmed that the administration is actively considering policies as part of its strategy to promote the use of cryptocurrency.
Currently, US tax law treats all crypto transactions as taxable events requiring small profit reporting. The proposed exemption reflects existing rules that waive taxes on foreign currency profits under $200, reducing the administrative burden for users making less valuable purchases.
Custodia Bank CEO Caitlin Long highlighted the magnitude of this potential change, saying it could outweigh the impact of the recently approved procrypted law, the Genius Act.
If enacted, exemptions could accelerate Bitcoin’s role as a functional payment method, rather than just an investment tool.