President Donald Trump is preparing to sign a sweeping executive order on Thursday that would open the doors for 401(k) retirement plans to include exposure to private equity, real estate, cryptocurrency, and other alternative assets.
Key Takeaways:
Trump’s executive order will allow 401(k) plans to include crypto, real estate, and private equity. Regulators like the Labor Department and SEC will review rules to expand access to alternative assets. The move aligns with Trump’s broader push to integrate digital assets into U.S. economic policy.The order will instruct the Labor Department to reevaluate its current guidance on what asset types are allowed within retirement plans governed by the Employee Retirement Income Security Act (ERISA), according to a Thursday report from Bloomberg.
It will also clarify fiduciary obligations for plan administrators offering exposure to these riskier, less liquid assets.
Trump Orders Agencies to Clear Path for Alternatives in 401(k) Plans
Trump’s directive further calls on Labor Secretary Lori Chavez-DeRemer to coordinate with the Treasury Department, SEC, and other federal regulators to assess what regulatory changes are needed to support broader access to alternatives in participant-directed plans.
The SEC will be tasked with easing access for investors interested in allocating part of their retirement portfolios beyond traditional stocks and bonds.
The initiative revives policies first introduced during Trump’s earlier term but later rolled back under President Biden.
Industry groups have lobbied hard for the change, arguing that the current retirement investment landscape doesn’t reflect how capital markets have evolved.
The number of public companies in the U.S. has declined significantly since the 1990s, while private equity assets have more than doubled in the past decade.
Supporters say allowing alternative assets in 401(k)s will offer Americans a chance at higher returns and portfolio diversification.
Critics warn it may also expose savers to steeper fees and legal risks, especially given the complexity and illiquidity of many private investments.
The effort also aligns with Trump’s aggressive embrace of digital assets. In recent months, the White House hosted a “Crypto Week,” passed the first federal stablecoin legislation, and announced the creation of a Strategic Bitcoin Reserve.
Trump has also appointed crypto-friendly venture capitalist David Sacks as the White House’s first-ever AI and crypto czar.
Trump Nets Over $26M in Crypto Donations This Year
As reported, the crypto industry has donated over $26 million to Donald Trump this year, according to newly released campaign finance filings.
Campaign finance records show that contributions to the pro-Trump super PAC, MAGA Inc., came from some of the biggest names in crypto.
Blockchain.com led the list with a $5 million donation. Venture capitalists Marc Andreessen and Ben Horowitz each gave $3 million, while Gemini Trust added nearly $3 million.
Gemini co-founders Cameron and Tyler Winklevoss also contributed $500,000 each personally. Other major donors include Ondo Finance with $2.1 million and Paradigm, which gave $1.2 million.
Trump’s crypto-linked holdings are also a substantial part of his personal wealth.
Bloomberg’s Billionaires Index estimates that TMTG stock represents $2.2 billion of Trump’s $6.6 billion fortune.
His broader cryptocurrency investments are believed to have gained at least $620 million in recent months.
Notably, nearly 70 nominees and officials in the Trump administration reportedly hold crypto or investments in blockchain companies, with holdings ranging from modest sums to over $120 million.
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