Democratizing Wealth: 401(k)s Now Include Crypto, Private Equity Under Trump Order

The U.S. government’s recent executive order, signed by President Donald Trump on August 7, 2025, has sparked renewed interest in cryptocurrency as a retirement investment. The directive allows 401(k) plans to include alternative assets such as Bitcoin, private equity, and real estate, marking a significant shift in retirement savings strategies. The order instructs the Department of Labor, the Treasury, and the SEC to revise regulations to facilitate these investments, aiming to democratize access to asset classes previously reserved for institutional or high-net-worth investors Kiyosaki Slams ETFs, Endorses Trump’s Crypto Plans^[4].

Robert Kiyosaki, author of Rich Dad Poor Dad and a vocal proponent of Bitcoin, has endorsed the policy, calling it a step toward treating investors “like adults.” In a September 2025 post on X, Kiyosaki criticized exchange-traded funds (ETFs) as “for losers,” advocating instead for direct ownership of digital assets like Bitcoin. He emphasized that the executive order aligns with his belief in diversifying retirement portfolios with alternatives such as gold, silver, and cryptocurrency, which he views as superior to traditional mutual funds .

The market responded swiftly to the policy shift. Bitcoin surged past $117,200 in the weeks following the order, reflecting heightened institutional and retail confidence. Analysts note that the inclusion of crypto in 401(k)s could unlock approximately $8.7 trillion in retirement assets, with major asset managers like BlackRock and Apollo already developing products to incorporate alternative investments Trump opens the door for crypto and private equity in your 401(k)^[2]. However, experts caution that the transition will be gradual. Fiduciaries must navigate regulatory complexities, and employers will likely take years to integrate these options into their plans due to concerns over volatility, custody, and compliance Trump Expands 401(k) Plans With Crypto^[1].

The executive order also rescinds prior Biden-era guidance that urged “extreme care” in allowing crypto investments, instead adopting a “facts and circumstances” approach. This shift is expected to reduce legal barriers for plan sponsors, though challenges remain. For instance, the SEC and Department of Labor must address issues such as accredited investor requirements and custody standards for digital assets . The Department of Labor has also directed agencies to propose “appropriately calibrated safe harbors” to mitigate fiduciary litigation risks .

While Kiyosaki and industry advocates highlight the potential for higher returns and diversification, critics warn of the inherent risks. Private equity and crypto assets are associated with illiquidity, high fees, and price volatility, which could expose retirement savers to significant losses. Ted Rossman, a senior analyst at Bankrate, noted that “index funds remain the best option for most investors,” with crypto allocations limited to a small portion of portfolios Trump Expands 401(k) Plans With Crypto^[1]. The order’s long-term success will depend on how regulators balance innovation with investor protection, as well as the pace at which employers adopt these new investment options.