Donald Trump has signed a groundbreaking executive order that will reshape how over 90 million Americans manage their retirement savings. The new directive opens the doors for 401(k) retirement plans—worth a collective $9 trillion—to invest in cryptocurrencies, private equity, and other alternative asset classes.
According to the Trump administration, the order instructs key regulatory agencies in Washington to re-examine current rules and offer clearer guidance on including alternative investments like Bitcoin and private market deals in professionally managed retirement portfolios.
Historically, 401(k) accounts have been limited to traditional assets such as public stocks and bonds. This move breaks from that legacy, diversifying workers’ savings but also introducing higher risks—such as volatility, lower liquidity, and elevated management fees.
While the crypto market has reached new highs in 2025, it is no stranger to boom-and-bust cycles. Trump’s executive order is seen as an extension of his administration’s broader deregulatory strategy. Over the past year, his team has scaled back regulations on digital assets and ended multiple investigations into crypto firms.
The Trump family’s own involvement in the digital asset space has raised eyebrows—owning significant stakes in crypto-linked firms and launching tokens under their Trump Media & Technology Group umbrella.
Critics caution that allowing private equity and crypto exposure in retirement accounts could put Americans’ long-term savings at greater risk. But the private capital industry sees a massive opportunity: access to 401(k) funds could bring in hundreds of billions of dollars in new investments.
Major firms such as Blackstone, BlackRock, and KKR have already begun forming alliances with retirement plan administrators in anticipation of this regulatory shift.
Though the order doesn’t provide immediate legal clarity for fund managers, experts believe it will pave the way for future legislative protections—particularly around liability concerns. Trump’s move is being hailed by his supporters as a step toward financial freedom and innovation in the retirement landscape.
