The Trump administration has decided to permit Americans to invest in Bitcoin through their pension accounts.
This decision reverses the strict limitations imposed by the Biden administration, which had cited pension protection as a reason for its restrictions.
According to the Financial Times (FT) and other foreign media outlets, the Department of Labor announced on Wednesday that it would revoke the 2022 guidelines that prohibited Bitcoin investments in pension accounts.
The former Biden administration had emphasized that pension managers and sponsors should exercise extreme caution when considering adding cryptocurrencies to 401(K) pension investment portfolios. The 401(K) plan is a workplace retirement plan where employers contribute funds alongside employees.
On that day, the Department of Labor removed the phrase “extreme caution” from its guidelines.
The department downplayed the significance of this change, stating that removing the phrase merely reaffirms a neutral stance, neither promoting nor discouraging Bitcoin.
However, in reality, it has opened the doors for large pension funds to be invested in Bitcoin.
Coincidentally, this could significantly benefit the Trump family.
Trump Media and Technology Group (DJT), the parent company of Trump’s social media platform Truth Social, announced on Tuesday that it plans to raise 2.5 billion USD in capital to invest in Bitcoin.
As the Trump family focuses on cryptocurrency and digital asset investments, the Trump administration actively supports the crypto industry.
Vice President JD Vance will speak at a Bitcoin conference in Las Vegas, Nevada, on the same day. High-ranking officials from the U.S. government, Trump associates, and the Trump family will also attend this event.
During the last presidential campaign, Trump pledged to foster the crypto industry as a strategic sector for the U.S.
He emphasized his goal of making the U.S. the capital of global crypto assets.
Although Bitcoin experienced a decline on this day, it recently surpassed 110,000 USD for the first time, buoyed by this policy shift.
