Retirement Funds Meet Crypto: The $43 Trillion Impact?

Welcome, Master. It is the morning of Friday, August 8, 2025. There was news yesterday that significantly heated up the market. As you requested, the three of us will now have an in-depth discussion about the true meaning of 'President Trump's executive order allowing cryptocurrency investments in retirement funds.'

Master, first, I will provide an objective briefing on the key points of the executive order announced yesterday.

On August 7th, local time, U.S. President Donald Trump signed an executive order to allow alternative assets, including cryptocurrency, in defined contribution (DC) retirement plans like the 401(k). This is a momentous step that could fundamentally change how Americans manage their retirement funds.

• Key Details: The executive order aims to have the Department of Labor (DOL) revisit the guidelines of the Employee Retirement Income Security Act (ERISA) of 1974, paving the way for pension managers to offer options like cryptocurrency.


• Eligible Assets: Initially, it is highly likely that assets with large market capitalizations and a proven track record, such as Bitcoin (BTC) and Ethereum (ETH), will be permitted.


• Market Size: The total U.S. retirement market, which this measure opens up, holds assets worth approximately $43.4 trillion (about 56,420 trillion KRW) as of the first quarter of 2025. The 401(k) plans alone account for $8.7 trillion of that.


• Legal Significance: As this is an executive order and not a legislative change, some analysts believe it could take at least a year for actual regulations to be established and for pension providers to launch products. However, compared to the previous administration's warning that "extreme care" was needed for including crypto in pensions, this is a clear 180-degree shift in policy.

Immediately following the news, the price of Bitcoin reacted and began to rise, indicating very high market expectations. This concludes the briefing.

Woooah! My Lord! This is the ultimate 'big one'! My heart feels like it's going to explode and fly all the way to the demon world! This isn't just good news; it's a revolution that will rewrite financial history! Devilish!

My Lord, just think about it! Did you see the market size Myu-tan mentioned? $43 trillion! Imagine if just 1%, no, even 0.5% of that money flows into the crypto market! The institutional funds we've seen so far were merely a stream! From now on, a great Pacific Ocean named 'Retirement Funds' will surge into the crypto market!

This isn't just about the amount of money!

• The Ultimate 'Diamond Hands' Arrive: Retirement funds are the most patient money in the world, looking at a 10 or 20-year horizon! They are on a different level from retail investors who sell off in a panic over short-term fluctuations! The influx of long-term capital that buys steadily and mechanically, even when the market crashes, is like creating a massive concrete support layer that solidifies the crypto market's floor!


• Official Recognition as a 'Legitimate Asset': The U.S. government has effectively endorsed it as a safe place for the people's most sacred retirement funds! Now, no one can dismiss cryptocurrency as 'a toy for speculators' anymore. This is a celebratory cannon blast announcing that crypto has been perfectly integrated into the mainstream as a core asset, standing shoulder-to-shoulder with stocks and bonds!


• Cheers from the Younger Generation: The younger generations, who are already familiar with crypto, will be ecstatic! They wanted to include Bitcoin in their retirement portfolios but lacked a proper way to do so. Now that a legitimate channel has opened, a magic spell will be cast, causing a portion of their salaries to flow steadily into crypto for decades to come!

💖 Kurumi's Heart-o-Meter Score: 150/100

My Lord, this is the dawn of a new era! Hesitate for a moment, and you'll miss your chance to be the protagonist of history!

One moment, Kurumi. Your explosive optimism is precisely the signal we should be most wary of. Human, you must not forget that the louder the celebratory cannon, the more harrowing the subsequent screams can be.

I see this executive order as a potential 'poisoned apple.' This isn't financial stability; it could be the act of sowing the seeds of a great disaster.

• Retirement Savings and Extreme Volatility: Do you really think this makes sense? To put a lifetime of savings into an asset that can lose 30% of its value overnight? The first principle of a retirement pension is 'stable preservation of principal,' not 'aggressive returns.' This is an extremely irresponsible idea that directly violates that principle.


• The Union of Financial Illiteracy and Greed: Most 401(k) participants are not professional investors. They will hear rumors of 'getting rich with Bitcoin' and likely pour their retirement funds in when the market is at its hottest. Then, when a crash comes, they will panic-sell at the lowest price, destroying their own retirement funds. This is a preview of a social catastrophe that could lead to millions of bankruptcies in old age.


• Political Risk: Do not forget, this is not a 'law' passed by Congress, but merely a presidential 'executive order.' This means it can be overturned at any time if the administration changes. If the next administration repeals this policy, the market will be thrown into tremendous chaos. Entrusting a long-term plan like retirement savings to such a fickle political decision is a massive risk in itself.


• A Festival for Fee-Mongers: The biggest beneficiaries will not be ordinary investors, but the pension providers and asset management firms that will collect high fees. They will lure investors under the guise of a 'new investment opportunity' and use their retirement funds to line their own pockets.

🚨 Mikael's Risk Score: 95/100

Human, this is not giving 'financial freedom,' but 'the freedom to self-destruct.' You must not throw your precious retirement funds into an unproven speculative pit.

» See also: Bitcoin Breaks All-Time High: What Does It Truly Mean?