Expanded Investment Options for Cryptocurrencies in 401(k)s, According to Trump
The U.S. retirement market is on the brink of a significant transformation, as President Donald Trump prepares to sign an executive order that will open the door to alternative investments, such as cryptocurrencies, gold, and private equity funds, within 401(k) plans. This policy shift, aimed at modernizing and broadening retirement investment options beyond traditional stocks and bonds, could potentially reshape the $9 trillion U.S. retirement savings landscape.
The order, which is expected to be signed as soon as this week, will instruct regulators, specifically the U.S. Department of Labor and the Securities and Exchange Commission, to reassess existing restrictions that limit retirement plans from investing in these alternative assets. This regulatory guidance and protection for plan managers will enable them to include less liquid but potentially higher-return investments without excessive legal risk.
The move follows earlier steps, such as the Labor Department rescinding Biden-era guidance in May 2025 that had taken a cautious approach toward crypto assets in retirement plans. This change could unlock a significant influx of institutional capital into the crypto market, gold, private equity, and other alternative investments.
Major private equity and asset management firms, including Blackstone, Apollo, BlackRock, and Partners Group, are already positioning themselves to benefit from this development by partnering with plan managers and 401(k) providers to offer private funds and alternative asset products to retirement savers. The order is also expected to provide a "regulatory shield" for administrators of 401(k) plans, reducing legal and fiduciary risks linked to offering complex and higher-fee alternative investments in retirement portfolios.
In addition to this policy push, the U.S. House of Representatives is set to vote on the GENIUS Act, which will regulate stablecoins. If enacted, Federal agencies in Washington would be directed to identify and remove regulatory barriers that prevent professionally managed 401(k) plans from offering exposure to nontraditional assets.
The latest policy move underscores Trump's broader effort to bring crypto into the financial mainstream. However, it's important to note that the real narrative behind Bitcoin and other cryptocurrencies continues to unfold, while Ethereum has taken the lead as Bitcoin finds its local top. As the U.S. retirement market embraces these new investment opportunities, it will be interesting to see how they perform and the impact they will have on the financial landscape.
Investing in alternative assets, such as cryptocurrencies and private equity funds, within 401(k) plans may soon become a reality due to President Donald Trump's upcoming executive order. This decision could potentially attract a significant influx of institutional capital into the crypto market, gold, and other alternative investments. The order also aims to provide a regulatory shield for administrators of 401(k) plans, reducing legal and fiduciary risks linked to offering complex and higher-fee alternative investments. Furthermore, the U.S. House of Representatives is preparing to vote on the GENIUS Act, which could further remove regulatory barriers, allowing professionally managed 401(k) plans to offer exposure to nontraditional assets.
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