President Trump has signed an executive order that could allow millions of Americans with 401(k) retirement accounts to invest in private equity, cryptocurrency, and other alternative assets. The order does not immediately change investment options, as federal agencies must first revise regulations — a process experts say could take months or longer.
Once in place, employers could offer workers a wider range of funds, including those tied to private businesses, cryptocurrencies, and real estate. The White House said this would expand investment strategies beyond the stock- and bond-based mutual funds that dominate most retirement plans.
The $5 trillion private equity sector has long sought access to 401(k) assets, while the cryptocurrency industry, whose leaders strongly supported Trump’s 2024 campaign, has pushed for broader acceptance. “It was inevitable that bitcoin would make its way into American 401(k)s,” said Cory Klippsten, CEO of Swan Bitcoin. Industry leaders, including TIAA and BlackRock, praised the move, saying it could benefit investors when integrated into professionally managed products.
The executive order directs the Labor Department and other agencies to redefine what qualifies as an asset under the Employee Retirement Income Security Act (ERISA), which requires employers to act in the best interest of employees. Currently, most retirement plans focus on stocks, bonds, and limited commodities.
Even after new rules are set, it could take years before major plan providers like Fidelity or Vanguard introduce crypto or private equity options, and for employers to adopt them. Bitcoin rose 2% to $116,542 on Thursday, nearly doubling since Trump’s election.
Under President Biden, regulators had taken a cautious stance toward crypto, citing volatility. Companies like Coinbase, a major donor to Trump’s inauguration and military parade, benefited under the new administration after the SEC dropped its lawsuit against the exchange.
Private equity leaders, including Blackstone CEO Steve Schwarzman, have long described tapping into retirement accounts as a major industry goal. Past administrations, Republican and Democrat, resisted the idea, citing risks, costs, and liquidity concerns compared with traditional investments.
