Trump Opens 401(k) Plans to Crypto and Private Assets in Major Policy Shift

President Donald Trump has signed an executive order that paves the way for American workers to include alternative investments—such as cryptocurrency, private equity, and real estate—in their 401(k) retirement accounts. The move marks a sweeping departure from conventional retirement planning, expanding access to high-risk, high-reward assets typically reserved for institutional investors.

Policy Targets ERISA Barriers and Regulatory Bottlenecks

The order directs the Department of Labor to revise its interpretation of fiduciary responsibility under the Employee Retirement Income Security Act (ERISA), while also calling on the SEC and Treasury to streamline compliance frameworks. The goal is to allow retirement plan providers to offer a broader set of asset classes without breaching existing legal obligations.

While the order does not mandate the inclusion of crypto or private equity in all plans, it removes long-standing regulatory uncertainty that had kept most providers on the sidelines. The $12 trillion 401(k) market could now become a new frontier for asset managers pushing into digital assets and private markets.

Wall Street Prepares to Capitalize—With Caution

Major asset managers such as BlackRock and Empower have already begun exploring new product offerings designed for this expanded 401(k) landscape. Private equity firms including Blackstone, KKR, and Apollo see the change as an opportunity to access a vast retail capital base previously off-limits.

Still, industry analysts warn of significant risks. Private assets are typically illiquid, fee-heavy, and less transparent than publicly traded securities. For plan sponsors and fiduciaries, the prospect of legal liability remains high unless the Labor Department’s upcoming guidance provides sufficient clarity and protection.

Crypto-Friendly Agenda Gains Institutional Ground

The executive order builds on Trump’s broader efforts to legitimize and integrate crypto into the financial system. Previous initiatives included the creation of a strategic Bitcoin reserve and scaled-back enforcement against crypto exchanges. By opening retirement portfolios to digital assets, the administration is signaling long-term policy alignment with the crypto sector.

A parallel order also addresses concerns over so-called “debanking” of crypto firms, directing federal agencies to investigate discrimination against blockchain-related businesses by financial institutions. The combined actions amount to a significant regulatory reshaping of how alternative finance interacts with U.S. capital markets.

Tips for Traders

• Monitor asset managers like BlackRock and Empower for new 401(k) products tied to crypto and private equity.

• Watch crypto markets for price action linked to anticipated flows from retirement accounts.

• Track private equity firms that could gain exposure to retail capital, including Blackstone and KKR.

• Stay alert to Department of Labor guidance, which will define the regulatory risk for fiduciaries.

• Follow ETF issuers exploring hybrid funds that combine traditional and alternative asset exposure.