Techub News, citing CryptoBriefing, reported that the U.S. government officially launched “Trump Accounts” on July 4. The program provides eligible children with an initial deposit of $1,000, while families can add up to $5,000 per year. Nearly 6 million children have already registered for the accounts.
The funds in the accounts will be invested in low-cost funds and ETFs that track indexes such as the S&P 500. The accounts receive tax-deferred treatment and will convert into traditional IRAs once the child reaches the age of 18.
Crypto investments are explicitly prohibited under the current structure. However, the plan is described as potentially expanding in the future to include crypto ETFs or tokenized funds. Index fund giants including BlackRock and Vanguard are expected to benefit from the program.