Retirement planning has long had a focus on stability and (for most people) slow growth of assets to make sure that the funds are there during their golden years.
On the flip side, cryptocurrencies have had a “wild west” reputation in the eyes of the uninformed general public.
That’s changing, though, and now many investors are looking at cryptocurrencies as one of their preferred retirement investment assets, and there are a number of reasons why.
We have a lot to go over today, so hold on to your hat.
Crypto has entered the mainstream investment marketplace
One of the most significant drivers of acceptance of crypto by average individual investors, including consideration for retirement planning, is that the wider financial press and major investment companies are now offering options to invest into cryptocurrencies.
Indeed, BankRate’s Logan Jacoby notes “the rise of bitcoin ETFs, and crypto IRAs introduced by financial giants, you may have questions about what role crypto should have in securing your retirement – and if it should even play a role at all.”
With mainstream financial media covering crypto in a level-headed way (instead of trying to scare people) and with huge companies like Fidelity getting involved, everyday investors will be coming around and making crypto an important part of their long-term investment strategies.
Of course, you may be asking, “Why is crypto going mainstream now?”
And the answer is that there are a number of reasons for this.
One big reason is the GENIUS Act which was just signed into law by President Trump.
Now, I’ve talked about the GENIUS Act before, but the important thing for you to know is that the legislation puts into place a regulatory framework for stablecoins.
Because stablecoins have their value tied to something outside of the crypto marketplace (and because government regulation in the financial industry makes many people more comfortable), this lends a huge perception of stability to stablecoins and cryptocurrency in general.
Imagine if just 10% of current retirement savers choose to diversify with crypto. What would that do to demand for cryptocurrencies?
It would explode the prices across the cryptocurrency marketplace.
But don’t just take my word for it!
Samuel O’Brient with Business Insider writes that the GENIUS Act’s “passage boosted crypto prices and sparked momentum for companies with high stablecoin exposure, such as Circle Internet Group and Coinbase. The milestones are expected to usher in a new era for crypto…”
More Federal crypto advocacy
Of course, it helps that President Trump has openly talked about his support and advocacy for cryptocurrencies. Millions of Trump supporters (and even financially savvy investors who aren’t particularly Trump supporters) are paying attention to his support of crypto, and the potential increase in new cryptocurrency investing is “yuge” (to use Trump’s phrase).
Reports are coming out that Trump intends to make cryptocurrencies available for what may be the single biggest retirement investment vehicle that Americans use.
Stephen Katte with Cointelegraph writes:
U.S. President Donald Trump is reportedly set to sign an executive order that could allow American 401(k) retirement plans to invest in alternative assets outside of stocks and bonds, such as cryptocurrencies.
The executive order could be signed sometime this week, the Financial Times reported on Thursday, citing three people who have been briefed on the plans.
Imagine how much allowing people to invest in crypto through their 401(k)s will do for demand for cryptocurrencies?
The Ripple lawsuit resolution helps everyone
But there is yet another reason why crypto is on the verge of going exponentially higher in valuations: XRP and Ripple.
I’ve talked about both Ripple and XRP before and how they are poised to revolutionize international banking by saving banks both time and money with transactions (encouraging institutional – big bank – adoption of both Ripple and XRP).
What you may not have known is that XRP has been tied up in legal issues with the Security and Exchange Commission. The SEC has agreed to settle that lawsuit, now. Anthony Di Pizio with The Motley Fool writes,
Trump appointed crypto advocate Paul Atkins to run the SEC, and under his leadership, the agency has already paused or withdrawn litigation against crypto giants like Binance and Coinbase. The SEC also agreed to settle the proceedings against Ripple by withdrawing its appeal of last year’s ruling, but a judge still needs to sign off before the case is officially closed.
As things stand, Ripple’s regulatory woes in the U.S. are as good as over, which is a key reason investors have flooded back into XRP.
As you can see, it’s a massive win for Ripple, XRP, and the crypto community overall.
What you need to do
With all of these factors pushing cryptocurrencies forward and more into the mainstream, it’s almost certain that valuations for those already in cryptocurrencies will go higher.
That’s a win for everyone involved.
And if you aren’t already involved in cryptocurrencies, or if you’re looking to work with an organization that allows you to be in control while taking advantage of IRS tax advantaged vehicles, now is the time!
You can start your due diligence by getting your free Insider’s Guide to Digital IRAs from us. Alternately, you can open your own Crypto IRA right now in less than 10 minutes.
