Bitcoin Crash Tests Trump’s Plan to Put Crypto in American Retirement Accounts

TLDR

• Bitcoin dropped 50% from its October peak, erasing $2 trillion in crypto market value and sparking debate about crypto in 401k retirement plans
• President Trump’s August executive order allowed 401k plans to include digital assets, and SEC chair Paul Atkins supported opening retirement markets to crypto
• BlockTrust IRA, managing $70 million in retirement funds, admitted it didn’t exit the market fast enough during the recent crash
• Lee Reiners from Duke Financial Economics Center argues 401ks should focus on secure retirement savings, not speculative assets
• Franklin Templeton sees blockchain technology and tokenized assets as the future for modernizing the retirement industry structure

Bitcoin fell 50% from its peak in October. The drop wiped out $2 trillion in market value. The crash has sparked debate about whether crypto belongs in American retirement accounts.

The 401k market holds $12.5 trillion in assets. These accounts are designed for stable, long-term growth. Crypto’s recent volatility has raised questions about its place in retirement planning.

President Donald Trump signed an executive order in August. The order allowed 401k plans to invest in alternative assets, including crypto. SEC chair Paul Atkins spoke about crypto in retirement accounts last week, just before the market crashed.

Many 401k plans already have indirect crypto exposure. Large crypto companies like Coinbase are included in major equity indices. Reiners believes this indirect exposure is enough.

The BlockTrust Experience

BlockTrust IRA manages an AI-powered retirement platform. The company added $70 million in IRA funds over the past 12 months. The recent crash caught the firm off guard.

The firm’s Animus Fund performed well in 2025. The fund was up 27% from January to December 2025. Bitcoin buy-and-hold strategies lost 6% to 13% during the same period.

Blockchain Technology for Retirement

Robert Crossley works at Franklin Templeton. He serves as global head of industry and digital advisory services. Crossley sees blockchain technology changing retirement management.

The current retirement industry is siloed and slow-moving. It also faces heavy regulation. Crossley believes onchain wallets holding tokenized assets could revolutionize the system.

The crypto industry remains young and volatile. Traditional markets like the S&P 500 have government protections and regulatory frameworks. Crypto lacks these safeguards during market crashes.

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