Trump’s Executive Order Could Be Bitcoin’s Next Big Catalyst—Novogratz

Mike Novogratz, chief executive of Galaxy Digital, told CNBC that a new executive order from US President Donald Trump could make it easier for retirement plans to include cryptocurrencies.

According to reports, the order asks the Labor Department to review ERISA rules so alternatives such as crypto, private equity, and real estate can be offered inside 401(k) plans.

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That’s a policy signal that could matter to many savers, but it will not instantly change how plans operate.

Trump EO: Potential For Trillions In Retirement Savings

Based on reports, Americans hold about $8.7 trillion in 401(k) assets, so even small allocations would add up.

Novogratz said that if companies like Fidelity, BlackRock or T. Rowe Price package crypto in retirement-friendly vehicles, mainstream access would increase.

That could let ordinary savers get exposure through tax-advantaged accounts they already use.

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Plan sponsors and record-keepers remain subject to ERISA responsibilities and questions of duty of care. Those responsibilities mandate fiduciaries to act in a prudent way for participants, and introducing volatile assets creates genuine legal and compliance concerns.

Thus, though the executive order reflects a change, regulators and plan providers must sort through operational realities before numerous retirement accounts hold significant crypto positions.

Fiduciary And Operational Hurdles

Plan administrators will need custody solutions, audit trails, and low-cost product structures to make crypto fit with defined contribution plans.

Many crypto vehicles carry lockups or higher fees, and that clashes with how 401(k) menus are usually set up. Litigation risk also remains: a sharp drop in value could lead to scrutiny from participants or courts.

Regulators will likely balance investor protection against widening access, and asset managers will balance demand with legal caution.

Market moves show the headline effect in action. Based on reports, Bitcoin traded at $116,500, up 3.0% in the past day, while Ethereum traded at $3,810, a 6% rise in the same timeframe.

Novogratz has pointed to institutional products such as BlackRock’s Bitcoin Trust as evidence of growing demand. Those products help create familiar entry points for big money and retail investors alike.

A Gradual Rollout

Don’t expect an instant tidal wave. Product teams at major managers will likely pilot custody and compliance setups before offering broad access.

Plan sponsors may start with small, optional allocations or specialized windows rather than adding crypto to default funds. Small percentages across many accounts could still add up to large dollar flows if given time.

In short, based on reports and Novogratz’s remarks, the executive order is a major political signal that could encourage more retirement capital toward crypto over time after Trump gives the EO its final seal of approval.

Featured image from Pool/Getty Images, chart from TradingView

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