U.S. President Donald Trump has signed an executive order that could dramatically change the landscape of retirement savings. The order paves the way for alternative assets, such as private equity, cryptocurrencies, and real estate, to be included in 401(K) and other defined contribution plans.

This move is a significant win for the alternative asset industry, which has long advocated for greater access to the trillions of dollars held in these retirement accounts. Historically, these assets were largely excluded from 401(k)s due to concerns over their high fees, lack of transparency, and illiquid nature. However, a 2020 Department of Labor guidance had already made some allowances, which have since been affirmed.

The executive order directs the U.S. Secretary of Labor to review existing guidance on these investments, which are governed by the Employee Retirement Income Security Act (ERISA). Following the news, cryptocurrencies like Bitcoin saw a price jump. Prominent asset managers like BlackRock and Empower have already begun preparing products that will include private investments in their retirement offerings, signaling the industry’s readiness to adapt to these new rules. The change aims to give average investors access to the types of assets that have traditionally been reserved for significant pension funds and endowments, though it also brings new risks.

End Notes

Source: https://www.cnbc.com/2025/08/07/trump-order-will-allow-alternative-assets-like-cryptocurrencies-private-equity-in-401ks.html