Key Takeaways
- President Donald Trump is reportedly preparing to sign an executive order that would allow Americans to invest in cryptocurrencies, gold, private equity, and infrastructure through their 401(k) retirement plans, potentially opening up a significant portion of the estimated $9 trillion U.S. retirement market to these alternative assets.
- The executive order is expected to direct federal regulatory agencies to identify and remove existing barriers preventing the inclusion of these non-traditional investments in professionally managed 401(k) funds.
- This move follows the Trump administration's earlier efforts to ease cryptocurrency regulations, including the Department of Labor's reversal of Biden-era guidance that had discouraged crypto investments in 401(k) plans.
President Donald Trump is reportedly preparing a landmark executive order that could fundamentally reshape how Americans save for retirement, allowing 401(k) plans to invest in a broader range of assets including cryptocurrencies, gold, private equity, and infrastructure. The Financial Times first reported the development, citing sources briefed on the plans. This initiative aims to open up the vast $9 trillion U.S. retirement market to investments beyond traditional stocks and bonds.
The executive order, anticipated to be signed as early as this week, would instruct regulatory agencies to investigate and eliminate existing hurdles that currently prevent these alternative investments from being included in professionally managed 401(k) funds. This policy shift could significantly expand investment options for millions of American savers.
This move aligns with the Trump administration's broader push to support digital assets and "free crypto" from what it has described as overly burdensome regulations. Earlier in May, the U.S. Department of Labor had already rescinded guidance issued during the Biden administration that limited the inclusion of cryptocurrency in 401(k) retirement plans.
The potential inclusion of digital assets like Bitcoin and Ethereum in 401(k)s could funnel billions of dollars into the cryptocurrency market, boosting liquidity and potentially influencing price stability over the long term. Beyond cryptocurrencies, the order would also provide access to precious metals, private loans, corporate takeover funds, and infrastructure deals.
Large investment firms, including Blackstone (BX), Apollo (APO), and BlackRock (BLK), are anticipated to benefit from this policy change, as they have been actively lobbying for access to retirement funds and are already forming partnerships with major 401(k) providers like Vanguard and Empower. Fidelity, another significant financial services company, already introduced a crypto-enabled retirement account earlier this spring, signaling a growing trend towards broader asset inclusion in retirement portfolios.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.