• Trump plans to let 401k savers invest in crypto and private assets through a new executive order.

  • The order would tell regulators to clear the path for retirement plans to hold non traditional investments.

  • Big firms like BlackRock and Fidelity are ready to offer crypto and private equity to retirement account holders.

President Donald Trump is preparing to sign an executive order that could reshape retirement investing. The order would direct federal agencies to allow 401(k) retirement plans to invest in alternative assets. These assets may include cryptocurrencies, private loans, corporate takeover funds, and precious metals.

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The move would shift 401(k) plans beyond their current focus on stocks, bonds, and mutual funds. The order could be signed as soon as this week. It would instruct regulatory bodies to identify any legal or procedural obstacles blocking access to non-traditional assets.

Regulatory Shift Follows Previous Policy Reversals

This follows a policy reversal by the Labor Department in May. That decision rescinded earlier guidance that discouraged crypto exposure in retirement plans. The Biden-era policy had raised concerns about volatility and investor protection in digital assets.

The upcoming order would seek to provide a clear path for retirement plan administrators. It could offer legal support to fund managers who want to include alternative investments. Agencies may be tasked with setting safe harbor rules to limit legal risks for providers offering new asset options. States like Michigan, already invested in a retirement system in a $6.6million Bitcoin ETF.

Private Market Players

Major asset managers are already positioning for these potential changes. Firms like Blackstone, Apollo, and BlackRock are exploring partnerships with retirement service providers. These collaborations aim to bring private equity products to individual savers.

Fidelity has already launched a crypto-focused retirement account. Empower and Great Gray Trust are also developing channels to distribute private market offerings. Industry insiders suggest this order could shift hundreds of billions in new investment into private funds.

These funds often come with higher fees and less liquidity than traditional investments. However, asset managers view 401(k) savers as a new capital source. Institutional funding has slowed, making individual investors more important to private equity firms.

Risks Remain for Retirement Savers

Although access to more options may benefit savers, the risks remain high. Private investments are complex and lack daily pricing. Crypto assets are associated with high fees and regulatory uncertainties.

Regulators would be required to provide safeguards and transparency. Financial advisors could have more influence in advising savers in such unfamiliar options.

This order would mark an important change in U.S. retirement policy. It could redefine how millions of Americans grow their retirement savings if it is signed.