Trump Accounts Ban Crypto, Launch July 4 with $6.25B

The US Treasury will launch tax-advantaged investment accounts for American children on July 4. The program, branded as "Trump accounts," explicitly excludes cryptocurrency and blockchain-based investments, restricting holdings to diversified US equity index funds and ETFs.

Accounts are open to US citizens under 18. Roughly 1.4 million children born between Jan. 1, 2025, and Dec. 31, 2028, qualify for a one-time $1,000 federal seed contribution under the 2025 reconciliation law. Private donations are capped at $5,000 per child per year, though federal, state, and some charitable contributions fall outside that limit. The default allocation is a low-cost S&P 500 ETF.

BNY Mellon (BK) will serve as the primary financial agent. Robinhood (HOOD) will develop the app and handle customer-facing interactions.

The Michael & Susan Dell Foundation pledged $6.25 billion to fund $250 deposits for up to 25 million children in lower-income ZIP codes.

The investment mandate is narrow. Only diversified US equity index funds and ETFs are allowed. Individual stocks, bonds, alternatives, and crypto assets are not permitted. The federal seed money and the Dell Foundation pledge could funnel tens of billions into passive US equity funds over the coming years. Family contributions add to the total.

Over 6 million accounts have already pre-registered. The program launches July 4.