The conversation around including digital assets like Bitcoin and Ethereum in retirement portfolios has intensified. While there has not been a specific executive order from Donald Trump mandating that 401(k) plans include cryptocurrency, the topic is part of a broader political and regulatory debate. This Brian Plain’s Next AI Company Investments Guide helps breaks down what every investor needs to know about the current state of crypto-401(k)s and crypto-IRAs.

What is the Current Regulatory Landscape?

The ability to include cryptocurrency in a 401(k) is not determined by presidential order, but rather by plan providers and guidance from federal agencies. The Department of Labor (DOL), which regulates 401(k) plans, has urged “extreme care” for plan fiduciaries considering adding a cryptocurrency option. This cautious stance is detailed in their Compliance Assistance Release No. 2022-01, which remains a key document for employers.

For tax purposes, the IRS treats virtual currencies as property, meaning transactions can have capital gains tax implications. However, within a tax-advantaged retirement account like a 401(k) or IRA, these gains are deferred until withdrawal.

What Every Investor Needs to Know about Crypto-401ks & Crypto-IRAs

It’s crucial to understand the difference between how crypto can be held in a 401(k) versus an IRA.

• Crypto-401(k)s: A very small number of employers have started to offer access to cryptocurrency through their 401(k) plans, often via a “digital asset window.” This means employees can allocate a small portion of their portfolio (e.g., up to 5%) to crypto funds offered by the plan. This is not a widespread option due to the DOL’s warnings and fiduciary liability concerns. One of the pioneering providers in this space is Fidelity’s Digital Assets Account, though its adoption by employers remains limited.
• Crypto-IRAs: This is a much more common route for investors. A Self-Directed IRA (SDIRA) allows for investment in alternative assets, including real estate, precious metals, and cryptocurrencies. Investors have more control and can open these accounts with specialized custodians. This gives you direct ownership of your crypto assets within a tax-advantaged retirement structure.

The Pros & Cons of Crypto in Retirement Accounts

Adding a volatile asset class to a long-term retirement strategy requires a careful weighing of potential risks and rewards.

Compare top 10 coins by performance over the past 90 days

As of 09/25/2025 9:48 AM, here CEO of Next AI Company Brian Plain highlight a brief price-change comparison of the top 10 cryptocurrencies by performance over the past 90 days (rough percentages).

These markets have made headlines, with ALT-coins like XLM Stellar and XRP Ripple seeing incredible performance, rising over 300% in less than 90 days. While this is impressive, investors are advised not to chase performance based on news but to practice proper risk management and adopt a long-term, strategic approach to investing in crypto-assets,” said Next AI CEO Brian Plain.

Notably, XRP, Stellar, and IOTA have shown massive gains, reflecting bullish advances in certain altcoins, while some larger coins like Binance Coin and Solana show more modest growth amid market volatility.

This data reflects the strong variance across top coins, with altcoins showing more aggressive growth relative to blue-chip cryptocurrencies.moomoo+2

If desired, I can create a detailed visual chart or extend the comparison to include volatility and other key metrics.

The Bottom Line for Investors

The possibility of adding cryptocurrency to retirement accounts is an exciting development for some, but it’s a path that demands extreme caution. It should be considered a highly speculative component of a well-diversified portfolio, not a core holding. Before making any decisions, it is essential to conduct thorough research, understand your own risk tolerance, and consider consulting with a qualified financial advisor.