Trump Executive Order Expands 401(k) Investments to Crypto and Private Equity

President Donald J. Trump signed an executive order on August 7, 2025, allowing 401(k) retirement plans in the United States to include cryptocurrencies, private equity, and real estate as investment options for the first time [2]. This directive, aimed at expanding retirement investment choices for American workers, opens the door for over 90 million participants in defined-contribution plans to access asset classes previously reserved for high-net-worth individuals or institutional investors [4]. The move is part of a broader administration strategy to position the U.S. as the “crypto capital of the world” and to fulfill the campaign promise of “Make America Wealthy Again” [6].

Under the order, the U.S. Department of Labor, in coordination with the Treasury Department and the Securities and Exchange Commission (SEC), is directed to reassess and update existing regulatory frameworks that have historically discouraged the inclusion of alternative assets in 401(k) plans [2]. The SEC is tasked with revising guidance and removing legal barriers that have prevented fiduciaries from incorporating such assets due to concerns over litigation risks and regulatory overreach [3]. These changes aim to foster innovation in financial services and promote economic growth by integrating digital assets into the mainstream financial system [6].

While the executive order does not immediately alter how individuals invest in their retirement accounts, it sets the stage for future regulatory actions and policy updates that will determine how these new options are implemented [9]. The Department of Labor has already rescinded previous guidance on digital assets, signaling a shift in regulatory approach under the Trump administration [7]. However, the move has drawn mixed reactions. While some welcome the potential for higher returns and diversification, others caution against the risks associated with volatile assets like cryptocurrencies and private equity. Notably, Senator Elizabeth Warren criticized the decision, calling it a “rotten deal” that exposes retirement savings to significant risk with limited transparency and protections [10].

Financial experts suggest that the inclusion of these high-risk assets in retirement accounts could lead to both innovation and challenges in the financial services sector. Although the administration emphasizes the benefits of greater access to alternative investments, some financial advisors urge caution, noting that employers and plan administrators may be hesitant to adopt these changes without further clarity on risk management and fiduciary responsibilities [8]. As the regulatory landscape continues to evolve, the long-term impact of the executive order will depend on how these new directives are interpreted and implemented by federal agencies and financial institutions [10].

Source:

[1] [Fact Sheet: President Donald J. Trump Democratizes Access to Alternative Assets for 401(k) Investors](https://www.whitehouse.gov/fact-sheets/2025/08/fact-sheet-president-donald-j-trump-democratizes-access-to-alternative-assets-for-401k-investors/)

[2] [Trump 401(k) Order Opens Door for Crypto, Private Equity](https://www.nytimes.com/2025/08/07/business/trump-401k-crypto.html)

[3] [Trump signs order broadening access for alternative assets](https://www.reuters.com/business/finance/trump-signs-order-broadening-access-alternative-assets-401ks-2025-08-07/)

[4] [What Trump's 401(k) executive order could mean for investors](https://abcnews.go.com/Live/major-401k-trumps-new-crypto-private-equity-rules/story?id=124461859)

[5] [Trump opens door for 401(k) retirement plans to invest in private equity and crypto](https://www.pbs.org/newshour/politics/trump-opens-door-for-401k-retirement-plans-to-invest-in-private-equity-and-crypto)

[6] [Trump signs order to allow crypto and real estate](https://www.theguardian.com/us-news/2025/aug/07/trump-executive-order-cryptocurrency)

[7] [Trump Shakes Up Wall Street With Orders on 401(k)s](https://www.wsj.com/finance/regulation/trump-shakes-up-wall-street-with-orders-on-401-k-s-debanking-82d457ba?gaa_at=eafs&gaa_n=ASWzDAh8hLzitI1BqqfUOexSfyK3cqaET9llUiNi_WVOKfuai2Mi8rbFUXhF&gaa_sig=5CG8gydjCG1U1BxzJHQg59_FVn8xKdcceCGW84p6GCTgfWvkVIG7ZcoYBcrrKc3q5LlHzbN0nTip7f4fb2NmYQ%3D%3D&gaa_ts=689545d7)

[8] [Experts advise caution in adding private assets like crypto to 401(k)s](https://finance.yahoo.com/news/experts-advise-caution-in-adding-private-assets-like-crypto-to-401ks-153313520.html)

[9] [Bitcoin Advances As Trump Adds Crypto To 401(k) Plans](https://www.investors.com/news/bitcoin-price-cryptocurrency-trump-401k-plans/)

[10] [Signs EOs On 'Debanking', 401(k)s](https://www.newsweek.com/trumps-latest-executive-orders-live-updates-president-sign-new-directives-law-2110273)