New Order: $9T Retirement Market to Invest in Bitcoin
Expanded 401k Investment Options with New Directive
A forthcoming directive is expected to allow the $9 trillion US retirement market to invest in Bitcoin, gold, and private equity. This move could benefit major investment firms like BlackRock and provide legal protections for 401k plan administrators.
According to reports, the directive will instruct federal agencies to remove regulatory barriers that prevent crypto and private assets from being included in professionally managed 401k plans.
Currently, most 401k accounts are limited to mutual funds holding public stocks and bonds. The new plan would enable managers to add Bitcoin and other digital assets, giving Americans more choice in their retirement savings.
The focus is on helping working Americans build wealth and secure their futures. However, it's important to note that no decision is final until it is officially announced.
This initiative builds on broader efforts to mainstream Bitcoin. Recent actions have included easing enforcement against major crypto companies and supporting legislation beneficial to the digital asset industry.
Additionally, there's support towards eliminating crypto capital gains tax to make small Bitcoin transactions tax-free and ease crypto adoption.
Boosting Crypto and Private Assets in 401k Plans
In May, the Department of Labor reversed a rule that discouraged 401k plan administrators from offering Bitcoin and crypto investments, paving the way for this upcoming directive.
The order is expected to benefit major private investment firms such as Blackstone, Apollo, and BlackRock. These companies have been planning to offer private assets through retirement plans and anticipate attracting billions in new capital once the rule takes effect.
The Labor Department is also being asked to create a legal safe harbor for plan administrators, limiting their liability when offering riskier private assets, including those with higher fees and less liquidity than traditional investments.
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