<401k: Crypto Seizes $8.7 Trillion in Pension Funds> Yesterday, Trump signed an executive order requiring the DOL and SEC to reassess the restrictions on alternative assets in retirement accounts like 401(k)s, covering private equity, physical, and digital assets. This means that digital assets have officially taken the stage in the design of the U.S. pension system for the first time, clarifying the gray area from "Can we enter?" to "How to comply?" Behind this is the initial opening of the door to $8.7 trillion in long-term funds. History tells us that once pension funds enter the market, they will inevitably drive liquidity and valuation leaps in assets, as evidenced by U.S. stocks, REITs, and emerging markets. Crypto assets are now standing on this path. The core of this executive order is to transform crypto from a "legal risk" into a "system controllable + auditable." It requires a redefinition of the compliance boundaries for alternative assets set by the 1974 ERISA, establishing safe harbor provisions to reduce litigation risks for trustees, and clarifying standards for valuation, liquidity, and fee disclosures, providing a framework for pension trustees to follow. Looking back at 2022, Fidelity and ForUsAll attempted to allow Bitcoin into 401(k) accounts, only to face risk warnings and a wave of lawsuits from the DOL, leading to a rapid closure of channels. At that time, it was individual institutions testing the policy edges; now, the White House is directly promoting cross-departmental compliance design, shifting the regulatory tone from "risk prevention" to "promoting institutional implementation." The 401(k) fund pool is massive, with assets exceeding $8.7 trillion by Q1 2025 and over 90 million participants. These are not speculative funds, but rather steadfast funds that continuously contribute, hold long-term, and passively adjust their positions. Even if crypto only accounts for 1%, that still means hundreds of billions in stable buying power each year. This resilience is enough to reshape the funding structure and volatility characteristics of the crypto market. What does this mean for BTC and ETH? Stable and long-term pension funds will serve as a cushion for prices, reducing short-term crashes and severe volatility, while also promoting institutional recognition and holdings. This executive order is not a signal of an explosion; it is expected to open a 12–18 month window. By then, Bitcoin and Ethereum will greatly benefit, and the market has already shown strong gains yesterday. - ArkStream Daily Alpha 8.8