In a move set to rattle the foundations of traditional retirement investing, President Donald Trump is issuing a new executive order aimed at unlocking 401(k) accounts for exposure to crypto, private equity, and other alternative assets.
The order, expected to be signed Thursday, pushes U.S. regulators to reconsider long-standing restrictions on what retirement savers can invest in. For decades, 401(k) plans have mostly stuck to public stocks and bonds, partly due to legal risk and the reluctance of plan administrators to touch complex or illiquid products. That cautious era may now be ending.
Trump’s directive instructs the Department of Labor to revisit its guidance under ERISA and coordinate with the Treasury and SEC on potential rule changes. The goal? Make room for assets once considered too risky or obscure for everyday savers.
This isn’t just about finance—it’s political too. The order closely aligns with Trump’s broader push to embrace cryptocurrency. In recent months, he’s hosted blockchain leaders at the White House, created a new federal crypto advisory role, and even called for a national Bitcoin reserve. Lawsuits against major platforms like Coinbase and Uniswap have been halted or dropped altogether, signaling a much softer stance toward the sector.
For asset managers and crypto firms, the opportunity is enormous. With more than $12 trillion sitting in 401(k) accounts, the possibility of tapping into even a fraction of that capital has Wall Street—and Web3—buzzing. Many traditional institutions have already maxed out their private asset exposure elsewhere, and retirement accounts are seen as the next great frontier.
Still, the move isn’t without controversy. Critics warn of higher fees, reduced transparency, and legal challenges if things go south. But for Trump, this is part of a bigger bet: that America’s future wealth will be built not just on public stocks, but on innovation, disruption, and decentralization.
Source: Bloomberg
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
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