Trump Executive Order Opens 401(k) Doors to Crypto and Private Equity

U.S. President Donald Trump is expected to sign an executive order that could allow cryptocurrencies, private equity, and real estate to be included in 401(k) retirement plans for American workers. The directive instructs the U.S. Department of Labor to review and revise existing restrictions on alternative assets in defined-contribution retirement plans [1]. The move has the potential to significantly expand the $12.5 trillion retirement market by incorporating digital assets, which have long been excluded due to regulatory uncertainty and concerns about volatility [2].

The White House confirmed the development through a press office statement, emphasizing that the order would also require the Department of Labor to clarify its position on alternative investments and issue guidance on fiduciary responsibilities for retirement plan administrators [3]. The directive also calls for inter-agency coordination with the U.S. Treasury and the Securities and Exchange Commission (SEC) to explore regulatory adjustments that could facilitate the adoption of digital assets in retirement portfolios [4].

A senior White House official stated that the goal of the executive order is to provide Americans with greater investment flexibility by allowing them to allocate their retirement savings to non-traditional assets like Bitcoin [5]. This comes after the Department of Labor recently rescinded a 2022 advisory that warned against the inclusion of cryptocurrencies in 401(k) plans, signaling a shift in the administration’s stance [6]. The move aligns with broader efforts to modernize retirement savings options and integrate them with the evolving financial landscape.

Despite growing institutional interest in crypto, individual investors have been largely excluded due to concerns about fiduciary risk and market instability [7]. Analysts have previously forecasted increased retail adoption of crypto following regulatory easing, but the success of this executive order will depend on how financial institutions structure and manage these new offerings [8]. SEC Chair Paul Atkins has also emphasized the need for investor education and transparency around the risks associated with crypto investments [9].

The White House has not yet provided detailed regulatory guidance on how the new framework will operate. However, the directive is expected to trigger a process involving the Department of Labor and the IRS to ensure compliance with existing retirement laws while accommodating new asset classes [10]. This development marks a pivotal moment for the crypto industry, which has long sought broader acceptance and integration into mainstream financial systems [11].

Sources:

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

[2] https://www.theblock.co/post/365956/trump-executive-order-crypto-401k-plan?utm_medium=rss&utm_source=news.xml

[3] https://www.reuters.com/business/finance/trump-sign-order-opening-way-alternative-assets-401ks-official-says-2025-08-07/

[4] https://cointelegraph.com/news/trump-crypto-401k-executive-order

[5] https://www.ft.com/content/42f7e2fc-5b42-4f36-ab1d-ea0f72f29468

[6] https://www.bloomberg.com/news/articles/2025-08-07/trump-to-sign-order-easing-path-for-private-assets-in-401-k-s

[7] https://www.theglobeandmail.com/business/article-donald-trump-401k-alternative-assets-executive-order/

[8] https://www.watcher.guru/news/trump-to-sign-order-allowing-crypto-in-401k-retirement-plans

[9] https://www.ccn.com/news/crypto/trump-overhaul-401ks-new-executive-order-crypto-real-estate-private-equity-retirement-portfolios/