Trump Executive Order Expands 401(k) Investments to Include Crypto and Alternative Assets

President Donald Trump signed an executive order on August 4, 2025, to expand investment options in U.S. 401(k) retirement plans by allowing the inclusion of cryptocurrencies and other alternative assets [1]. The directive mandates the Department of Labor to reevaluate its existing guidance and collaborate with the Securities and Exchange Commission and other federal agencies to determine how to integrate such assets into retirement investment frameworks [2]. The move aims to enhance diversification and potentially increase returns for retirees by broadening the types of assets that can be included in their portfolios [3].

The order removes prior restrictions that discouraged retirement plan fiduciaries from including crypto assets. Previously, the Department of Labor had issued guidance warning of the risks associated with cryptocurrency and advised “extreme care” before adding it to 401(k) offerings. This guidance was rescinded in May 2025, and the new executive order builds on that by directing the DOL to issue updated rules that treat crypto similarly to traditional assets [1]. This shift could encourage wealth managers to reconsider their positions, potentially leading to increased investment in crypto through exchange-traded funds or direct holdings [2].

The crypto market responded positively to the announcement, with prices of major digital assets rising amid expectations of increased institutional demand and greater mainstream integration [1]. However, the inclusion of crypto in retirement plans raises concerns about volatility and the potential for mismanagement, given the speculative nature of the asset class. Some analysts suggest that ETFs may be preferred over direct crypto holdings due to their perceived lower risk [2].

In addition to crypto, the order also permits the inclusion of real estate investment trusts, venture capital, and private equity in 401(k) plans [3]. This broader approach aligns with Trump’s economic agenda of reducing regulatory burdens and promoting market-driven solutions. The long-term effects of the policy will depend on how the Department of Labor interprets and implements the new guidance, as well as the market’s response to the inclusion of alternative assets in retirement portfolios [4].

The Department of Labor is now tasked with reviewing and updating its rules to ensure that retirement funds can incorporate crypto assets in a legal and secure manner. The process could take several months, during which industry stakeholders and regulators will likely engage in discussions on risk management, investor protection, and compliance frameworks [2]. The order also includes a broader directive on debanking, though it does not explicitly mention crypto. The administration aims to prevent financial institutions from restricting services based on political or religious beliefs [1].

Source:

[1] The – [https://thedefiant.io/news/markets/crypto-markets-climb-as-trump-expected-to-sign-401-k-executive-order-today](https://thedefiant.io/news/markets/crypto-markets-climb-as-trump-expected-to-sign-401-k-executive-order-today)

[2] AInvest – [https://www.ainvest.com/news/trump-executive-order-paves-alternative-assets-401-2508/](https://www.ainvest.com/news/trump-executive-order-paves-alternative-assets-401-2508/)

[3] The – [https://www.independent.co.uk/news/donald-trump-fox-news-indiana-census-mike-braun-b2803729.html](https://www.independent.co.uk/news/donald-trump-fox-news-indiana-census-mike-braun-b2803729.html)

[4] John – [https://johnlothiannews.com/trumps-attack-on-wind-solar-cuts-deeper-than-industry-expected/](https://johnlothiannews.com/trumps-attack-on-wind-solar-cuts-deeper-than-industry-expected/)