Video: https://youtu.be/h3lN0Hyn5jg
Washington may soon let crypto into your 401k… Is this the next big wealth opportunity—or a ticking time bomb for your retirement?
Why does there seem to be such a big push for Crypto? Who is behind that? Is this a good idea? Are we moving too fast? Can the government catch up? If they catch up can they stay on top of it? Should you consider adding Crypto to your 401k?
I will answer all these questions but before we dive in, What we’re witnessing is nothing less than a financial revolution from the top down.
The situation is moving very fast and these changes can make or break your financial future. Stay informed,hit the like button and subscribe to my channel for more breaking updates.
Lead
Crypto: For years, the Crypto industry has been the wild west when it comes to investing. Because of its lack of laws and regulations and difficult enforcement, it is the perfect environment for criminals to take advantage of regular people.
Crypto Industry lobbying for years to become a legitimate investible asset class. Why? Get more money in Crypto so they make more money.
We are talking $7T in America’s retirement
Lawmakers passed new laws, new executive orders have been signed. Can they move this quickly? Who is writing these bills? Are we moving too fast?
Retirement Plans: Retirement portfolios are mostly concentrated in stocks and bonds in part because corporate plan administrators are reluctant to venture into highly volatile and risky asset classes because they have a fiduciary duty to the members.
In his first term Trump/DOL said don’t worry.
Biden rolled it back
Defined benefit
Defined Contribution Sponsored (menu of options -> fiduciary responsibility)
Institutional investors like US pension funds and endowments have reached the limit on equity (bubble).
Alternative and traditional asset managers are eager to grab a slice of the 401k market, Next Frontier
YOU: more investment options, greater potential for returns. BUT also higher volatility, greater risks, higher fees.
What can you do today from your 401k?
Can’t hold crypto directly (who owns the key)
Crypto-Linked ETFs
U.S. SEC approved spot Bitcoin ETFs and ETH spot ETFs starting in January 2024
Blockchain ETFs (Amplify BLOK, Global X BKCH, Bitwise BITQ) that hold crypto-related companies.
NON Crypto Company with big holdings: MSTR, Tesla.
Crypto company: COIN, Marathon, RIOT
Most Plan administrator won’t allow because of lawsuit
What is the plan to make this?
The plan is already in motion
Genius Act - DONE
Digital Asset report - DONE
Department of Labor: Since May 2025, no longer discourages plan sponsors from considering crypto exposures. Is this sufficient for plans to avoid lawsuit. More to come
SEC & CFTC to settle classifications. Commodities, securities or something else.
Clarity act - in progress
SEC launched Project Crypto to modernize regulation of on-chain assets.
SFTC began “Crypto Sprint” to enable spot crypto trading
These must be SEC-approved, audited, and custodially safe before becoming options. In progress for 401k
FDIC - Not yet addressed
Executive Order opening 401k to Crypto -8/7
FIT21 Act - Regulatory framework for digital assets. Passed May 2024 awaiting senate
Is Your Money At Risk?
You can invest in crypto as long as you do it safely and logically.
Don’t try to catch up for missed opportunities
Crypto:
Potential for high returns
Highly Volatile and Risky
Basics of investing -> Allocation <5%
Prioritize BTC, ETH,
Stay away from Meme coins and unproven projects. Even if promoted by someone of influence
Crypto has a long way to go before it’s cleaned up.
Deal with foreign players out of American control, law.
Hedge with Stable Income Assets
Real estate rentals
Regular stocks
Be aware of indirect exposure. You may already have Crypto
ETFs
Crypto related stocks like Coinbase, miners like Marathon, Riot
MSTR: BI software that became the largest holder of 600,000 BTC -> $70B
TSLA: $1.5B inBTC