Executive Order August 7: The Day Crypto Went Mainstream
On August 7, 2025, President Donald Trump signed an executive order that will allow 401(k) retirement plans to allocate to a broader menu of assets—private equity, real estate, and, for the first time, crypto.

• National-level endorsement: Washington is effectively stamping crypto as a legitimate long-term holding.

• Yield diversification for savers, volatility import for markets.

• Historic precedent: the last time 401(k)s expanded their universe this dramatically was when they were allowed to buy stocks during the Great Depression recovery.

1/6 · Pre-Depression Pensions: Safety First, Returns Last
From the early 1900s through the Roaring ’20s, America relied on defined-benefit plans: employers promised a fixed monthly pension.

• Investment mindset: capital preservation over growth.

• Legal List statutes restricted holdings to Treasuries, high-grade corporates, and munis.

• Upshot: portfolios survived recessions, but missed the equity boom.

2/6 · The Great Depression: When “Safe” Became Risky

• October 1929: Dow falls ~90 %.

• Collateral damage: companies folded, pension promises evaporated.

• Public backlash forced federal action.

• 1935 Social Security Act created a national floor, but private pensions remained locally run and still barred from “speculative” stocks.

3/6 · Post-War Yield Squeeze & The First Stock Allocation

• Bond famine: post-war muni yields plunged to ~1.2 %.

• “Prudent Man Rule” reinterpreted: fiduciaries could diversify if the overall portfolio was prudent.

• 1950: New York State legalizes up to 35 % equity exposure.

• Pushback: unions and actuaries called it “gambling with workers’ savings.”

• Reality check: the ensuing bull market silenced critics and lowered taxpayer burdens.

4/6 · Institutionalization & ERISA (1974)

• By 1960, >40 % of public-pension assets were already outside government paper.

• ERISA codified the “prudent investor” standard nationwide, normalizing equities.

• 2008 reminder: heavy equity weights hurt retirees during the GFC, reopening the risk debate.

5/6 · Crypto Allocation: Echoes of 1950
Allowing 401(k)s into crypto is the next leap—higher octane, earlier stage. Signals flashing:

• Regulatory turbo-charge: guidance, custody rules, and investor education will all accelerate.

• Market maturation imperative: just as stocks needed a secular bull, crypto needs a sustained uptrend to justify allocation.

• De-facto national HODL: 401(k) money is locked for decades—a new strategic-reserve sink for digital assets.

6/6 · 401(k) 101 for the Curious

• Origin: Section 401(k) of the Internal Revenue Code, added 1978.

• Structure: defined-contribution plan—employee + employer chip in, individual bears market risk.

• Contributions: pre-tax (or Roth after-tax) salary deferrals; employers may match up to a set %.

• Investment menu: participant picks from employer-curated list—index funds, bond funds, target-date funds.

• 2025 expansion: menu can now include PE, real estate, and crypto.

• Ownership: gains belong 100 % to the employee.

• No safety net: losses are not guaranteed by employer or government.

Bottom line: the 401(k) is morphing from bond bunker to multi-asset rocket ship, and crypto just got a first-class seat.

Executive Order August 7: The Day Crypto Went Mainstream
On August 7, 2025, President Donald Trump signed an executive order that will allow 401(k) retirement plans to allocate to a broader menu of assets—private equity, real estate, and, for the first time, crypto.

• National-level endorsement: Washington is effectively stamping crypto as a legitimate long-term holding.

• Yield diversification for savers, volatility import for markets.

• Historic precedent: the last time 401(k)s expanded their universe this dramatically was when they were allowed to buy stocks during the Great Depression recovery.

1/6 · Pre-Depression Pensions: Safety First, Returns Last
From the early 1900s through the Roaring ’20s, America relied on defined-benefit plans: employers promised a fixed monthly pension.

• Investment mindset: capital preservation over growth.

• Legal List statutes restricted holdings to Treasuries, high-grade corporates, and munis.

• Upshot: portfolios survived recessions, but missed the equity boom.

2/6 · The Great Depression: When “Safe” Became Risky

• October 1929: Dow falls ~90 %.

• Collateral damage: companies folded, pension promises evaporated.

• Public backlash forced federal action.

• 1935 Social Security Act created a national floor, but private pensions remained locally run and still barred from “speculative” stocks.

3/6 · Post-War Yield Squeeze & The First Stock Allocation

• Bond famine: post-war muni yields plunged to ~1.2 %.

• “Prudent Man Rule” reinterpreted: fiduciaries could diversify if the overall portfolio was prudent.

• 1950: New York State legalizes up to 35 % equity exposure.

• Pushback: unions and actuaries called it “gambling with workers’ savings.”

• Reality check: the ensuing bull market silenced critics and lowered taxpayer burdens.

4/6 · Institutionalization & ERISA (1974)

• By 1960, >40 % of public-pension assets were already outside government paper.

• ERISA codified the “prudent investor” standard nationwide, normalizing equities.

• 2008 reminder: heavy equity weights hurt retirees during the GFC, reopening the risk debate.

5/6 · Crypto Allocation: Echoes of 1950
Allowing 401(k)s into crypto is the next leap—higher octane, earlier stage. Signals flashing:

• Regulatory turbo-charge: guidance, custody rules, and investor education will all accelerate.

• Market maturation imperative: just as stocks needed a secular bull, crypto needs a sustained uptrend to justify allocation.

• De-facto national HODL: 401(k) money is locked for decades—a new strategic-reserve sink for digital assets.

6/6 · 401(k) 101 for the Curious

• Origin: Section 401(k) of the Internal Revenue Code, added 1978.

• Structure: defined-contribution plan—employee + employer chip in, individual bears market risk.

• Contributions: pre-tax (or Roth after-tax) salary deferrals; employers may match up to a set %.

• Investment menu: participant picks from employer-curated list—index funds, bond funds, target-date funds.

• 2025 expansion: menu can now include PE, real estate, and crypto.

• Ownership: gains belong 100 % to the employee.

• No safety net: losses are not guaranteed by employer or government.

Bottom line: the 401(k) is morphing from bond bunker to multi-asset rocket ship, and crypto just got a first-class seat.