U.S. Congressman Troy Downing has introduced the Retirement Investment Choice Act to transform Trump's executive order on cryptocurrencies into permanent legislation, aiming for legislative approval in Washington.
This measure could open 401(k) plans to digital assets, impacting U.S. retirees and the broader cryptocurrency market, potentially increasing inflow into digital currencies.
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Congressman Troy Downing has introduced the Retirement Investment Choice Act to codify Executive Order 14330, originally signed by President Donald Trump. The measure targets inclusion of digital assets in 401(k) plans as legislated norm.
The legislation, co-sponsored by several Republican representatives, seeks to eliminate restrictions for alternative assets in retirement plans. It urges financial agencies to revise existing regulations as directed in the executive order.
Industry experts speculate this could lead to a significant influx of capital into digital assets. The financial market is anticipating potential adjustments, although execution remains at providers' discretion under regulatory guidance changes.
The bill proposes financial and market implications that challenge previous Biden Administration guidance on retirement plans and cryptocurrency investments. The American Securities Association supports the act, while labor groups express concern.
Analysts suggest Bitcoin and Ethereum might benefit from the bill’s advancements. Historical trends indicate possible increased adoption if passed, reflecting the sentiments seen in pension fund experiments and prior regulatory pivots.
"ASA applauds Rep. Downing's leadership in Congress to codify President Trump's 401(k) Executive Order into law, which will expand investment opportunities for every American retirement saver and retiree." — Chris Iacovella, President and CEO, American Securities Association