President Donald Trump reportedly strengthens his pro-Crypto agenda with plans to expand access to trillions from pension funds and to alleviate tax for daily crypto use.
According to a June 17 report Because of the Financial Times, sources that are familiar with the case that the president could soon be able to give an executive order, so that 401 (K) can invest pension plans in cryptocurrencies, gold and private equity.
This initiative would mean an important shift in the US pension policy. Traditionally, 401 (K) plans are limited to conventional assets such as shares and bonds. By recording crypto and other alternatives, the White House wants to modernize investment options and use the growing attraction of digital assets.
A 401 (K) is a tax -developed pension plan in which American employees contribute part of their wages to an investment account. The new executive order is expected to instruct federal supervisors to evaluate and revise existing rules that are currently limiting access to alternative assets.
If implemented, the relocation can lead to policy to support direct crypto property, exposure by ETFs and investments in blockchain-oriented companies.
Omar Kanji, a partner at Crypto Venture Firm Dragonfly, called The development the “biggest unlocking” for the digital assets sector.
He noticed:
“American pension assets are at $ 43 trillion, with $ 9 trillion in 401Ks. With Trump that opens the Flooodgattes, if Crypto sees only a allocation of 1% of 401Ks, that is ~ $ 90 billion in fresh intake. The pension market is going to be huge and the real party will start.”
Bitcoin tax reduction
In a separate development, the Trump administration is investigating a tax exemption “De Minimis” for small crypto transactions. This would remove the tax obligations of capital gain for small purchases with digital assets such as Bitcoin.
White House Pers Secretary Karoline Leavitt confirmed That the administration actively regards policy as part of its strategy to promote crypto use.
The US tax legislation currently deals with every crypto transaction as a taxable event that requires reporting even small profit. The proposed exemption would reflect existing rules that refrain from taxes on foreign currency profits of less than $ 200, which reduces the administrative burden for users.
Custodia Bank CEO Caitlin Long emphasized The extent of this potential change, which states that it could surpass the impact of the Genius Act, a recently approved pro-Crypto legislation.
If determined, the exemption can accelerate the role of Bitcoin as a functional payment method instead of just an investment vehicle.
