Trump’s Executive Order Could Become a Major Bitcoin Catalyst, Says Galaxy Digital CEO

Summary: Mike Novogratz, CEO of Galaxy Digital, believes a new executive order from U.S. President Donald Trump could be a turning point for cryptocurrency adoption in retirement accounts. The order directs the Department of Labor to review rules that could allow crypto in 401(k) plans.

Background: Executive Order Aims to Expand 401(k) Access to Alternatives

President Donald Trump’s forthcoming executive order calls on the U.S. Department of Labor to reassess ERISA regulations, potentially enabling retirement plans to allocate funds to alternative assets—including cryptocurrencies, private equity, and real estate. The move could open the $8.7 trillion 401(k) market to digital assets, granting everyday savers access to crypto via familiar, tax-advantaged investment vehicles.

According to Forbes reports, this policy signal is significant, though the immediate impact would be limited. It sets the stage for future integration rather than triggering an overnight transformation.

Market Impact: Trillions in Assets May Be Within Reach

Galaxy Digital’s Mike Novogratz argued that if leading asset managers like Fidelity, BlackRock, or T. Rowe Price incorporate crypto into retirement-friendly products, it would mark a significant shift in accessibility. Even minor allocations across trillions in 401(k) funds could generate substantial capital flows into crypto markets.

Still, fiduciary duty under the Employee Retirement Income Security Act (ERISA) remains a challenge. Legal and compliance concerns around the volatility of crypto assets mean that widespread adoption will require careful navigation by plan sponsors and regulators.

Fiduciary and Operational Considerations

Plan administrators must resolve considerable operational issues before crypto can be seamlessly integrated into 401(k) offerings. These include secure custody solutions, transparent audit trails, and cost-effective product structures. Many existing crypto investment vehicles feature liquidity constraints or high fees, which may not align with standardized 401(k) plan design.

Litigation risk is another complication, especially if market downturns lead to losses and participant complaints. Regulatory bodies are expected to assess investor protection while firms balance innovation with responsible implementation.

Price Update: Bitcoin and Ethereum React to Executive Order Buzz

Crypto markets responded positively to the headlines. Bitcoin climbed 3.0% to $116,500, while Ethereum rose 6% to $3,810 within 24 hours. Novogratz highlighted institutional products such as BlackRock’s Bitcoin Trust as indicators of surging demand from both institutional and retail investors.

A Gradual Rollout Ahead

While the executive order marks a political shift, widespread crypto integration into retirement accounts is likely to unfold gradually. Asset managers are expected to begin with pilot programs, testing custody and compliance frameworks. Initial offerings may involve small, elective allocations or separate investment windows rather than default plan components.

Nonetheless, even modest crypto exposure across millions of accounts could scale into substantial inflows over time, potentially catalyzing broader market adoption depending on future regulatory clarity and product readiness.

Featured image from Pool/Getty Images, chart from TradingView