MasterQuant Tracker｜GOP Lawmakers Propose Bill to Codify Trump’s 401(k) Executive Order, Reshaping Retirement Investment Landscape

MasterQuant reports that Republican lawmakers in the U.S. House of Representatives have introduced the Retirement Investment Choice Act, a bill aimed at codifying President Trump’s Executive Order No. 14330. The order allows 401(k) retirement accounts to invest in “alternative assets,” including cryptocurrencies—a move widely seen as a step toward modernizing America’s retirement investment system.

The bill, backed by several GOP members, seeks to give the executive order full legal standing. It directs the Department of Labor (DOL) and the Securities and Exchange Commission (SEC) to lower regulatory barriers that currently prevent retirement accounts from allocating to alternative assets. The legislation emphasizes “financial democratization,” advocating for equal investment access between retail savers and institutional investors.

MasterQuant analysis suggests that if passed, the bill could significantly reshape the U.S. retirement market. Currently, 401(k) plans are largely limited to traditional assets like stocks, bonds, and mutual funds. Due to regulatory constraints, alternative assets—such as private equity, real estate, and crypto—are rarely included. Legalizing broader access would open diversified allocation channels for tens of millions of retirement savers, especially amid rising inflation and interest rate volatility.

AI model forecasts from MasterQuant indicate that if the bill enters the legislative pipeline and passes, the proportion of crypto allocations in U.S. retirement accounts could rise from 0.3% to 1.5%, representing over $45 billion in potential inflows. On-chain data teams at MasterQuant have observed that some custodial platforms and pension service providers are already testing crypto custody and compliance interfaces in anticipation of regulatory changes.

Market reaction was swift. Crypto assets rallied on the news: Bitcoin rose 3.8%, Ethereum gained 4.2%, and related crypto ETFs and mining stocks also surged. MasterQuant interprets this as a strong signal of market sensitivity to policy catalysts, especially in an environment of macroeconomic uncertainty where regulatory expectations increasingly influence asset prices.

Regulatory debate is intensifying. Supporters argue that the current framework is overly conservative and restricts retail investors from accessing high-growth assets. Critics warn that crypto’s volatility could jeopardize retirement savings. MasterQuant’s policy research team expects regulators to introduce “suitability assessment mechanisms” to ensure investors have adequate risk awareness and financial capacity before allocating to crypto.

The bill may also accelerate collaboration between fintech platforms and traditional pension providers. MasterQuant has observed several fintech firms developing 401(k) crypto modules, including asset screening, risk scoring, tax optimization, and compliance reporting. These tools are expected to launch rapidly if the legislation is enacted.

From a global perspective, the U.S. initiative could prompt other countries to reevaluate their retirement investment frameworks. MasterQuant notes that if the U.S. successfully integrates crypto into mainstream retirement accounts, it may trigger pension reform waves across Europe and Asia, further advancing the institutionalization of digital assets.

In summary, the Retirement Investment Choice Act marks a shift toward a more diversified, personalized, and digital retirement system. MasterQuant recommends investors closely monitor the bill’s progress, regulatory responses, and market feedback. Early positioning in infrastructure, compliance services, and asset strategy could unlock structural opportunities tied to this policy tailwind.