Trump’s Executive Orders Revolutionize Crypto: Ban Debanking and Open 401(k)s to Digital Assets for the First Time Ever

EddieJayonCrypto

 7 Aug 25

tl;dr

President Trump signed two executive orders affecting the cryptocurrency industry. The first prevents crypto debanking by prohibiting denial of financial services based on political or religious beliefs, mandates referrals of discrimination cases to the Department of Justice, and requires banks to r...

President Trump signed two pivotal executive orders impacting the cryptocurrency industry. The first order focuses on preventing crypto debanking, ensuring that Americans cannot be denied financial services based on political or religious beliefs. This move directly addresses concerns stemming from events like Operation Choke Point 2.0, mandating regulators to refer religious discrimination cases to the Department of Justice and requiring banks to restore services to unlawfully debanked clients. Additionally, federal banking regulators will review prior practices and may impose penalties, while the Treasury Department is tasked with proposing a national strategy to combat politicized debanking.

The second executive order marks a significant change in retirement investment policy by allowing cryptoassets and other alternative investments, such as private equity and real estate, to be included in 401(k) and defined-contribution plans. Previously limited to traditional assets like mutual funds and bonds, 401(k) plans can now diversify further. This order instructs the Department of Labor to revise fiduciary guidelines under ERISA and clarifies how digital assets can fit within target-date and asset allocation funds. It also emphasizes coordination among the SEC, Treasury, and other regulators to support this expanded access, citing potential benefits in diversification and returns for long-term retirement portfolios.

Together, these orders signal a major federal policy shift, framing digital assets not just as legitimate business ventures but also as viable investment vehicles for retirement security. This regulatory clarity is likely to encourage increased institutional investment and broader adoption within the financial sector.