Trump to approve crypto investment for Retirement Accounts

[TheUltraElite]

Trump riding the wave again?

It is not about bitcoin specifically is it? If it is hinting to crypto only, you can be sure Trump is going to bring in some of their own shitcoin and then it will pump and dump.

Also the owners of those accounts might have a say in this, they might be or might not be willing to invest in crypto at all.

[GK_lior]

When we look at the world today, any bank account that has gotten to the stage of retirement is an account that has little to no idea on crypto currencies. It is announced that President Trump prepares to sign an executive order to allow retirement accounts to take part in investing into cryptocurrencies. These accounts are said to be about 401k accounts, going beyond the traditional investment of stocks like gold and its likes.

If this order is signed, what will be its effect on the market?
[/quot
I think this will be one of the most profiting thing, he will be doing to help secure the future of the elderly one’s because the more bitcoin is rising the more there money increase

[Solosanz]

OP, at first it would have been nice if you had explained better what you meant by "retirement account" in context, as not everybody gets it clear here what you meant by the word retirement account, as the majority of the people here are from nations or regions where such is not conversant with them, and besides this is a global platform so people would be curious to know what it means from your explanations even if I am aware of it, others too will need to have a little brief on what you meant by that.

Read https://www.investopedia.com/terms/1/401kplan.asp

It's like you work under someone, then your boss didn't give all amount of your monthly salary, but some part are automatically invested. But, you're the one who choose which assets that you want to invest.

Do not forget that they also want tax, and do not forget that they will always want to get them KYCed as well.

For sure the government will know everything of your cryptocurrencies.

I treat people who invest in Bitcoin through 401k is similar to buy Bitcoin ETFs, both need to trust the company who custody it and the government.

[Floxynice]

Do not forget that they also want tax, and do not forget that they will always want to get them KYCed as well.

For sure the government will know everything of your cryptocurrencies.

I treat people who invest in Bitcoin through 401k is similar to buy Bitcoin ETFs, both need to trust the company who custody it and the government.

Before the government will even consider this idea of introducing crypto, they must have thought about what they stand  to gain and how tax will be applied. For now, we are not even sure if Trump will be introducing Bitcoin or an altcoin. Whatever it is, it is still good news that the government is gradually recognising crypto and allowing people to invest in it without strict restrictions. This is a good way to go for the crypto community. However, I must still add that people be allowed to decide if they want these crypto investment as a retirement plan or not.

[yhiaali3]

Yes, that's right. I read the news yesterday that Trump is preparing a major change to US retirement plans, signing an executive order allowing cryptocurrencies, gold, and private equity to be added to 401k accounts.
The Biden administration had previously banned crypto from retirement.
The US retirement market which approximately $9 trillion will be opened up to crypto assets and this will certainly have a significant positive impact in the long run.

It's also worth to noting that Congress just passed three pro-crypto laws with Trump's support: the GENIUS Act, the Clarity Act, and the Anti-CBDC Act.
These decisions will create an open environment for crypto in the US, attract more large investments, and have a positive impact on the crypto in general.

[lionheart78]

If this order is signed, what will be its effect on the market?

I have a feeling that the fund would be invested in an ETF, and it would have an effect to the market if it is invested in a spot ETF since it requires holding an actual Bitcoin thus creating demands in the market.  It would be a waste of funds if it were invested in the Futures Bitcoin ETF since the funds do not really get into the market of Bitcoin. 

Regardless, I think it is one step forward for Bitcoin and cryptocurrency if the retirement accounts are approved to invest in cryptocurrency.

[karabiber]

If this decision is signed, it will be a turning point for crypto. One thing we all know well is that good news will trigger the bull. This news is one of them. Pension funds are a huge market in the US. Even if only a fraction of it enters the crypto market, the market will react quickly. One of the most positive aspects of this situation is that institutions like the SEC draw clear legal frameworks. This would integrate crypto into the traditional investment world. It would significantly increase the market capitalization of large projects, especially Bitcoin.

[kotajikikox]

This one would likely to work than accepting Bitcoin as a currency.

Will this not lead to that either way? Accepting bitcoin for retirement funds will boost demand but it might not be the most helpful in mass adoption and making sure bitcoin gets spent.

Most people use Bitcoin as an investment, retirement is a long term purpose, so anyone who include Bitcoin in their retirement plan won't regret.

I think that even a lot of young people would be happy with this kind of news and would be delighted to have an investment waiting for them at the end of the road so that they are secure and set for life.

[Botnake]

I don't understand the essence of the proposal for retirement accounts to invest into the crypto when bitcoin hasn't been restricted in the he United States

On one hand, this is a good option, but on the other, they will know I hold Bitcoin. I keep it in my wallet for retirement and prefer to manage it myself rather than entrust thethird party with it. That said, many people are uncomfortable with cryptocurrency, and would likely prefer to invest through 401(k) option. Overall, it's a nice initiative from Trump's side. Hope to see $150K in the nearest future.

Well, expect that there’s always a consequence for us in every advantage that the government offers. I have no doubt it’s a smart move for Trump and this will certainly bring cryptocurrency closer to the government and banks. However, our anonymity factor when it comes to holding bitcoin will also be at risk, so we have to think of it carefully and wisely. But for those who isn’t thinking of being anonymous anymore, I guess they will grab this kind of opportunity to ensure their retirement in the future.

[nelson4lov]

Imo, it's a net-positive bill that has been passed into law. I think now that's it's in effect, it means people can start apeing into Bitcoin with their 401K plans.

Good because:
— People can better plan their future with Bitcoin instead of dollar that gets eaten up at the end of the day via inflation.
— Bitcoin is opened up to a more mature market, one that isn't built primarily off of speculation.

There are other benefits. Those are just some of the main ones.

[X-ray]

That sounds great, I'm expecting a significant increase into the inflow of BTC.

More capital is always better for the market, making it more resilient and make it more liquid.

Since bitcoin has been having massive growth over the course of decade, it's only normal that anyone want to invest in it.

[Danica22]

It's also worth to noting that Congress just passed three pro-crypto laws with Trump's support: the GENIUS Act, the Clarity Act, and the Anti-CBDC Act.
These decisions will create an open environment for crypto in the US, attract more large investments, and have a positive impact on the crypto in general.

No, so far only the GENIUS Act has been passed by Congress and officially became law after being signed by Trump. The remaining two bills, the Clarity Act, and the Anti-CBDC Act, have passed the House but are still awaiting a vote in the Senate. They have not yet officially become law.

Legally these laws are positive and will be a catalyst for the crypto industry in general but the downside is that we will be more regulated and controlled. But that doesn't seem to matter because what the masses care about is profit, not privacy or anonymity.

[yhiaali3]

~

No, so far only the GENIUS Act has been passed by Congress and officially became law after being signed by Trump. The remaining two bills, the Clarity Act, and the Anti-CBDC Act, have passed the House but are still awaiting a vote in the Senate. They have not yet officially become law.

Legally these laws are positive and will be a catalyst for the crypto industry in general but the downside is that we will be more regulated and controlled. But that doesn't seem to matter because what the masses care about is profit, not privacy or anonymity.

Thank you for correcting me. I thought all of these bills had passed the Senate, but I expect there will be no problem with the Senate vote because Trump's pro-cryptocurrency party holds the majority. Therefore, I expect the vote to be in favor of passing the remaining bills.

Yes, these three bills will create a very stimulating environment for the crypto sector and attract more companies and major investments to the United States. This will greatly benefit the US government treasury.

[bangjoe]

Trump riding the wave again?

It is not about bitcoin specifically is it? If it is hinting to crypto only, you can be sure Trump is going to bring in some of their own shitcoin and then it will pump and dump.

Also the owners of those accounts might have a say in this, they might be or might not be willing to invest in crypto at all.

That's the plan. It'll definitely be like a stock market, but they'll include family coins and coins that only support them. That's very bad for a decentralized system, and it will damage its reputation.

But it will be even more interesting when all the altcoins are tied together, and only Bitcoin can stand alone with its decentralized system without being influenced.

[Dr.Bitcoin_Strange]

Financial time published the news yesterday, and from the statement, It didn't mention Bitcoin specifically but it only did made reference to crypto generally as it stated that it will include cryptocurrency investments, gold and private equity. We know that Trump can be funny at times, hope this is not just a statement where at the end he take a contrary action.

The move is to diversify the investment of the retirement market to other sectors. The US, before now, has restricted retirement funds to traditional stocks and bonds. Giving retirement fund managers the green light to invest in crypto could open up the market to more investment funds. The Trump government has been making some new laws to free up the crypto industry and take it to the mainstream. Let's just hope that he will sign the executive order and let retirement funds flow into the crypto market.

If he signs it, there's no doubt that it will open a window for more funds to flow into crypto investment which can also make the market experience an uptrend again in this bull season. What I was just saying that it should not be a joke that he didn't mean it  but only said it meanwhile deep down he might not approve it. You already know how politicians can be at times.

[GigaBit]

When we look at the world today, any bank account that has gotten to the stage of retirement is an account that has little to no idea on crypto currencies. It is announced that President Trump prepares to sign an executive order to allow retirement accounts to take part in investing into cryptocurrencies. These accounts are said to be about 401k accounts, going beyond the traditional investment of stocks like gold and its likes.

If this order is signed, what will be its effect on the market?

This will be undoubtedly a good initiative for cryptocurrency. Money will start coming into the crypto market from those accounts which will increase the flow of money into the market and the market will be in a strong position. Usually, idle money is left in these accounts. If that money is invested in crypto, then the market will be stable and the risk of sudden decline will be reduced because long-term investments are kept here. Earlier, there were few reliable investments in the market, and if the flow of money decreased for any reason, Bitcoin would have fallen drastically but if 401k accounts coming into the market, there will be high confidence in the market. The rapid decline in the market will be greatly reduced.

[MusaPk]

No link source for this announcement?

No president is doing like this before but surely the regulators should be catching up before this executive order flies.
Everybody is onboard already when this happen. Elders just have to hope they are not going to lose their hard earned money and they can use their funds while they retire somewhere warmer.

It OP has shared the link of this news then we can better understand it.

At retirement age most people are not in a position to do any other private job or business and they need money to pay for things like medical bills etc. We know crypto is still volatile and investing in anything other then Bitcoin is extremely risky. Even if we invest in bitcoin their are chances that our investment may be struck for weeks or months before we see profit coming on our investment. A retire person can't wait for weeks or months to get his investment back.

Again, we can better comment on that news if we have complete details of that plan.

[goldkingcoiner]

When we look at the world today, any bank account that has gotten to the stage of retirement is an account that has little to no idea on crypto currencies. It is announced that President Trump prepares to sign an executive order to allow retirement accounts to take part in investing into cryptocurrencies. These accounts are said to be about 401k accounts, going beyond the traditional investment of stocks like gold and its likes.

If this order is signed, what will be its effect on the market?

I think this will be good news for Bitcoin but we might also see a lot of sell-off.

401K accounts collectively represent trillions of dollars. Even a small percentage allocated to Bitcoin could mean a massive injection of capital into the market. But here's the thing, we cannot expect everyone to be a hodler. Risk-averse investors will want to make sure their money is safe and they might trade the Bitcoin in for something else as soon as they get it. Obviously they care more about their well-being in retirement than for the future price of Bitcoin.

Not to mention all the new regulations that we can expect from the SEC after such an implementation.

[CryptSafe]

snip

Read https://www.investopedia.com/terms/1/401kplan.asp

It's like you work under someone, then your boss didn't give all amount of your monthly salary, but some part are automatically invested. But, you're the one who choose which assets that you want to invest.

Do not forget that they also want tax, and do not forget that they will always want to get them KYCed as well.

For sure the government will know everything of your cryptocurrencies.

I treat people who invest in Bitcoin through 401k is similar to buy Bitcoin ETFs, both need to trust the company who custody it and the government.

It is now better, as you explained it here, for the understanding of other members here. If the government decided to do it this way for workers, it would be nice with the consent of the workers, they can be able to invest in bitcoin and other crypto of their choice, since it is now clear that the government is the one making the arrangement for them through an approved agency or organisation. I hope the percentage to be invested would be disclosed to the workers for their knowledge before such is done.

As for the kyc, the government definitely would have it done, as they would want to get every dime they want from the process, so they take whatever information is deemed necessary for them to get that which would benefit them in the long-run.