Trump to Reshape Retirement Savings with Crypto and Alternatives
Donald Trump is preparing to radically expand investment options for American retirees. According to insiders, the U.S. president is finalizing an executive order that will allow 401(k) retirement plans to invest in alternative assets such as cryptocurrencies, gold, and private equity.
This move would mark a dramatic shift from the current system, which largely restricts 401(k) investments to public stocks and bond mutual funds. Trump's new directive would instruct regulatory agencies in Washington to remove barriers and pave the way for broader asset classes — including digital currencies and private capital funds — to be integrated into retirement portfolios.
"President Trump is committed to restoring prosperity for everyday Americans and safeguarding their economic future," a White House spokesperson told the Financial Times.
A $9 Trillion Market Ready for Disruption
The U.S. retirement market, valued at over $9 trillion, is seen as a prime opportunity for innovation. With millions of Americans saving for retirement through 401(k) plans, expanding their access to high-growth sectors like cryptocurrency could unlock billions in new capital.
Under the expected order, the Department of Labor will explore legal protections for plan administrators who choose to offer these new investment options. This would lower liability concerns around offering non-traditional, higher-risk assets that are harder to value than public stocks.
Crypto Goes Mainstream Under Trump
This initiative builds on Trump’s broader agenda to normalize cryptocurrency in the U.S. economy. His administration has already taken steps to scale back crypto-related regulations and dropped high-profile enforcement actions against major exchanges.
Just last week, the House of Representatives passed several crypto-focused bills supported by Trump. The president has credited the digital asset sector as a key ally during his 2024 campaign — and now, his family is doubling down with a $2 billion crypto investment through the Trump Media & Technology Group.
Private Equity and Wall Street Ready to Benefit
While cryptocurrencies are stealing the spotlight, the executive order would also boost the role of private equity in retirement investing. Firms like Blackstone, Apollo, and BlackRock — which have been eyeing the 401(k) market for years — could soon gain access to a vast pool of new capital.
Blackstone recently partnered with Vanguard, and Apollo is working with Empower, a large 401(k) provider. BlackRock has started offering access to alternative assets through its partnership with Great Gray Trust.
If fully enacted, the order could attract hundreds of billions in new funds to the private equity space, sources familiar with the matter say.
Risks and Rewards for American Savers
Opening up 401(k) plans to alternatives brings both opportunity and risk. While cryptocurrencies and private equity offer higher growth potential, they also carry volatility, fees, and liquidity concerns. Trump’s order is expected to address this by urging regulators to implement safeguards for retail investors.
Still, many in the finance sector welcome the move as a step toward modernizing U.S. retirement investing. With inflation concerns rising and traditional markets under pressure, expanding access to diverse assets may offer American workers a more resilient path to retirement security.
