Millions of Americans who save for retirement through 401(k) plans might soon have access to investments that were once reserved for the ultra-wealthy. We’re talking private equity, real estate, and yes–cryptocurrency.
President Donald Trump signed an executive order Thursday instructing federal agencies to explore new rules that could allow these types of alternative assets to be included in workplace retirement plans. While no changes take effect immediately, the directive sets the stage for a significant shift in how Americans plan for their financial futures.
Donald Trump, upon learning that actress Sydney Sweeney is registered as a Republican
Traditionally, 401(k)s have been built around relatively stable and familiar options: mutual funds, stocks, bonds, and a bit of cash. Under ERISA-the 1974 law that governs retirement plans-employers are legally obligated to act in the best interest of their employees. That’s part of the reason risky or opaque assets like crypto and private equity haven’t made the cut. Now, that could change.
A New Chapter for Crypto and Private Equity-at Your Job
Trump’s order gives the Department of Labor six months to rework what qualifies as an acceptable investment in 401(k) accounts. If successful, the rule change could allow employers to offer funds that include crypto and private equity-two sectors that strongly supported Trump’s 2024 campaign.
Crypto companies like Coinbasedonated millions toward Trump’s reelection and inauguration events. They’ve also been pushing hard for inclusion in mainstream finance. Meanwhile, private equity giants like Blackstone have long viewed retirement accounts as the “holy grail” of capital access. Blackstone’s CEO, Steve Schwarzman, has publicly called access to 401(k)s a dream since at least 2017.
In short, these industries now see their opportunity-and they’re ready to act.
Bitcoin’s price ticked up 2% on Thursday, hitting $116,542-nearly double what it was before Trump’s return to office. For younger investors in particular, the potential to funnel retirement dollars into crypto is more appealing than ever.
“As fiduciaries realize bitcoin’s long-term value, especially younger workers will gravitate toward it,” said Cory Klippsten, CEO of Swan Bitcoin.
Will Retirement Plans Become Riskier-or Smarter?
Not everyone is celebrating. Critics point out that crypto remains extremely volatile-bitcoin and ethereum can jump or crash 10% in a single day. Under the Biden administration, the Department of Labor urged firms to use “extreme care” before adding digital assets to retirement menus. That guidance has now been rolled back.
Private equity also carries its own risks. Returns can be higher-about 13% annually, according to Cambridge Associates-but investors may not see their money again for years. Liquidity is limited, fees are often steep, and transparency can be low compared to traditional funds.
Still, investment giants like Vanguard and Fidelity are already exploring options. Vanguard recently said it’s focused on “educating retirement investors” about these emerging opportunities and risks. Several major firms have started forming partnerships with alternative asset managers like Apollo Global and Blackstone.
So what does this mean for the average worker? It could be years before most employers offer these new options. Regulatory changes take time, and companies are notoriously slow to adjust their retirement plans. But the door is open, and the appetite-for better or worse-is growing.
Whether this is a bold move toward financial innovation or a gamble with workers’ futures is still up for debate. What’s clear is that the boundaries of retirement investing are shifting-and fast.