Trump Orders Review to Let 401(k) Investors Access Alternative Assets, Including Crypto

What We Know

President Donald Trump signed an executive order on Thursday aimed at giving millions of Americans with 401(k) and other defined-contribution retirement plans the option to invest in a broader range of alternative assets. The move, outlined in a White House fact sheet, is billed as “democratizing” investment opportunities that have long been available to wealthy investors and public pension funds.

The order directs the Department of Labor to reexamine its past guidance under the Employee Retirement Income Security Act (ERISA) and consider rescinding a 2021 supplemental statement that discouraged fiduciaries from offering certain alternative investments. It also instructs the agency to clarify fiduciary processes for including asset allocation funds containing these assets and to issue rules or safe harbors that reduce litigation risks.

Alternative assets defined in the order include private market investments, real estate holdings, commodities, infrastructure projects, lifetime income strategies, and actively managed funds that invest in digital assets such as cryptocurrency. The SEC is tasked with exploring regulatory changes — including adjustments to accredited investor definitions — to expand access for retirement savers.

What They’re Saying

The White House said the initiative is part of Trump’s broader economic agenda, which includes his One Big Beautiful Bill and a pledge to make the United States the “crypto capital of the world.” Officials argue the change will help workers “build wealth and thrive” by removing regulatory and legal barriers that have, in their view, constrained retirement growth.

Critics, however, warn the policy could expose retirement savers to volatile and opaque markets. “Stuffing private equity, crypto, and other ‘alternative assets’ into 401(k)s is about propping up scams and bailing out an industry that’s run out of buyers — and it’s being done at the expense of Americans’ retirements everywhere,” said Helaine Olen, managing editor at the American Economic Liberties Project, as quoted by HuffPost.

Industry advocates see it differently. Summer Mersinger, CEO of the Blockchain Association, said in a post on X that by “allowing Americans to include regulated, diversified crypto exposure in their 401(k) retirement accounts, the administration is expanding consumer choice and empowering individuals to responsibly build wealth using some of the best-performing assets of the past decade.”

The Big Picture

The order does not immediately change 401(k) investment menus. Instead, it sets a regulatory review process in motion, with the Labor Department expected to issue new guidance within six months. Under the Biden administration, the Labor Department cautioned fiduciaries to use “extreme care” before adding cryptocurrency options to retirement plans — a position now under review.

Supporters argue that expanding access could bring higher long-term returns and diversification benefits. Opponents say the potential volatility, complexity, and higher fees of some alternative assets could put retirement security at risk for less experienced investors.

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