US President Donald Trump has directed federal regulators to explore changes that would make it easier for Americans to use retirement savings to invest in cryptocurrencies, private equity, property, gold, and other non-traditional assets.
The executive order, issued Thursday, instructs the Department of Labor to identify and remove regulatory barriers that may discourage employers from including such options in workplace retirement accounts, commonly known in the US as 401(k) plans.
The initiative aims to expand investment choices for everyday workers, granting access to opportunities historically reserved for wealthy individuals and large institutions. Supporters say the move could unlock new funding streams for firms in alternative asset sectors, while critics warn it could expose savers to higher risks.
Most American workers rely on 401(k) accounts for retirement, as traditional pensions with guaranteed payouts have largely disappeared. Under the current system, employees contribute a portion of their earnings to investment accounts, often matched in part by employers. Federal regulations require plan administrators to consider factors such as risk, liquidity, and fees when selecting investment options.
Historically, employers have avoided offering higher-risk or less liquid assets—such as private equity—due to their higher fees, reduced transparency compared to publicly traded companies, and difficulty in converting them to cash. Similar caution has been applied to cryptocurrency, which is known for its volatility.
Under Trump’s order, the Department of Labor has 180 days to review existing rules and propose changes. Any revisions are unlikely to take effect immediately, but major investment managers are already preparing for potential shifts. Industry leaders such as State Street and Vanguard have announced partnerships with alternative asset giants Apollo Global and Blackstone to launch retirement funds focused on private equity.
Trump’s own business ties include connections to cryptocurrency and investment-related ventures. The administration has already reversed certain regulatory restrictions, including a 2022 Labor Department advisory that urged employers to exercise “extreme care” before adding crypto investments to retirement accounts.
This latest push builds on earlier efforts from Trump’s first term, when the Labor Department issued guidance supporting private equity in retirement portfolios. That policy saw limited adoption due to fears of lawsuits and was later rolled back by President Joe Biden.
While proponents argue the new approach could improve diversification and returns for retirement savers, critics caution that exposing workers’ retirement funds to illiquid, volatile, or opaque investments could leave them vulnerable, particularly during economic downturns.
The Department of Labor’s forthcoming review will determine how far the administration can go in reshaping the $7.5 trillion 401(k) market, potentially altering the retirement landscape for millions of Americans.
