President Donald Trump has signed an executive order aimed at addressing what he describes as banking discrimination against conservatives, cryptocurrency businesses, and religious groups. The order prohibits banks and financial institutions from debanking Bitcoin users and crypto-related companies, seeking to ensure these entities maintain access to banking services. This move continues the Trump administration's opposition to the Biden administration's more restrictive policies toward the crypto industry. David Sacks, the White House AI and Crypto Czar, criticized top banks for still restricting access to Bitcoin ETFs on wealth management platforms, calling it the last vestige of "debanking." Additionally, Trump signed an executive order opening the $12.5 trillion 401(k) retirement market to alternative investments such as cryptocurrencies, private equity, and real estate. This directive instructs the Department of Labor and the Securities and Exchange Commission to clarify rules within 180 days, allowing more than 90 million Americans to include crypto in their retirement portfolios. While investment professionals warn that this expansion introduces higher risks and fees, proponents argue it enhances financial literacy and diversification opportunities. The orders have sparked a notable recovery in crypto exchange-traded products (ETPs), with a reported $1.57 billion inflow, and have been described as unlocking up to $9 trillion in 401(k) assets for Bitcoin investments. The new policies present regulatory challenges for banks and oversight agencies as they balance anti-discrimination mandates with fiduciary responsibilities.
"It's about time for 401(k)s to let people make their own decisions," tastylive CEO Tom Sosnoff says in response to President Trump's order to allow crypto and private assets into retirement accounts. "The reality is, it's good for financial literacy, it's good for the business." https://t.co/k669By0qvd
Trump Unlocks $9 Trillion 401(k) Floodgates for Bitcoin https://t.co/Vb5P5eqWop
President Donald Trump’s executive order targeting what he calls “debanking” of conservative groups, crypto firms, and gunmakers sets up a tough balancing act for banks and the regulators that oversee them. https://t.co/9y6NinKmQ1