President Donald Trump has signed an executive order that could eventually allow millions of Americans to invest their 401(k) retirement savings in higher-risk assets, including private equity, cryptocurrency, and real estate.
While the order does not immediately change retirement investment options, it directs the Labor Department and other federal agencies to revise regulations under the Employee Retirement Income Security Act of 1974 (ERISA) to expand what qualifies as permissible assets. Experts note that this process could take months—or even years—before new options reach employees’ retirement plans.
Once implemented, employers could include a wider variety of mutual funds and alternative investment vehicles in their offerings. The $5 trillion private equity industry and the cryptocurrency sector—both long seeking access to retirement funds—stand to benefit significantly.
“It was inevitable that bitcoin would make its way into American 401(k)’s,” said Cory Klippsten, CEO of Swan Bitcoin. “As fiduciaries realize bitcoin’s risk-adjusted upside over the long term, we’ll see growing allocations, especially from younger, tech-savvy workers who want hard money.”
Major investment firms such as TIAA and BlackRock have welcomed the move, saying it could give workers more diversified options when professionally managed.
Bitcoin’s price rose 2% to $116,542 following the announcement, nearly doubling since Trump’s election victory. Under the Biden administration, regulators had cautioned against crypto’s extreme volatility, which can see double-digit price swings in a single day.
For private equity, access to Americans’ 401(k) funds would provide a vast new source of capital. Blackstone CEO Steve Schwarzman has previously described such access as a “dream” for the industry.
However, some retirement experts warn that private equity and cryptocurrencies carry higher risks, fees, and liquidity challenges compared to traditional stocks and bonds. Even after regulatory changes, adoption into mainstream retirement plans is expected to be gradual as employers and fund managers develop suitable investment products.
