Trump Proposes Opening US Retirement Market to Crypto Investments

President Donald Trump plans to sign an executive order opening the US retirement market to cryptocurrency investments, gold, and private equity. The move aims to combat "woke AI" and promote the US in the AI race with China. Nvidia CEO Jensen Huang recently met with Trump to press his case for restarting sales of AI chips to China.

President Donald Trump is set to sign an executive order that could significantly transform the US retirement landscape by allowing cryptocurrency investments, gold, and private equity in 401(k) retirement plans. The move, confirmed by multiple sources cited in the Financial Times report, aims to integrate alternative investments into the retirement market, potentially unlocking new opportunities for investors while also presenting risks [1].

The executive order follows recent regulatory shifts that have softened the stance on cryptocurrency in retirement funds. In May, the Department of Labor reversed prior guidance that discouraged managers from incorporating cryptocurrency into investment strategies, citing "overreach" by the Biden administration [1]. Lawmakers have also attempted to broaden acceptable retirement investments to include crypto, with Rep. Peter Meijer introducing the Retirement Savings Modernization Act in 2022, which failed to reach a floor vote [1].

As of March, Americans held around $8.7 trillion in 401(k) retirement funds, according to data from the Investment Company Institute [1]. Several states have already incorporated digital assets into their retirement investments or are seeking to do so, with North Carolina lawmakers introducing bills to allocate up to 5% of certain retirement fund balances into crypto [1].

The executive order, expected to be signed this week, will instruct Washington's financial regulators and the Department of Labor to open 401(k) accounts to a broad spectrum of investments not previously available to most savers. These investments could include cryptocurrencies such as Bitcoin, Ethereum, and stablecoins, precious metals like gold, and private equity, including funds tied to buyouts, private loans, and infrastructure projects [2].

Proponents believe the changes will expand the menu of investment choices for retirement savers, offer upside potential, and enable ordinary investors to capture returns once reserved for institutional players. However, critics warn that these benefits come with significant risks, including higher fees than standard index funds, lower liquidity, valuation opacity, and greater risk of losses, especially in complex or leveraged funds [3].

The move is poised to benefit private capital groups, which are seeking to funnel ordinary retirement savings into higher-fee, less liquid alternative investments. The executive order is expected to direct officials to create a regulatory "safe harbour," shielding employers and asset managers from legal risk if these riskier private investments are included in 401(k) menus [3].

In addition to the financial implications, the executive order is part of a broader strategy to promote the US in the AI race with China. Nvidia CEO Jensen Huang recently met with Trump to press his case for restarting sales of AI chips to China, reflecting Trump's broader push to unshackle the cryptocurrency industry and promote US technological leadership [3].

References:
[1] https://www.theblock.co/post/363266/trump-eyeing-executive-order-to-allow-crypto-gold-and-private-equity-in-401k-retirement-plans-report
[2] https://www.theblock.co/post/363266/trump-eyeing-executive-order-to-allow-crypto-gold-and-private-equity-in-401k-retirement-plans-report?utm_medium=rss&utm_source=policy.xml
[3] https://invezz.com/news/2025/07/18/donald-trump-set-to-open-the-us-retirement-market-to-crypto-investments/