Trump Plans to Open 401(k)s to Alternative Assets
The Financial Times reported today that President Donald Trump is preparing to sign an executive order that would allow 401(k) retirement plans to invest in alternative assets including gold, private equity, and cryptocurrencies like Bitcoin. The move would open the $9 trillion U.S. retirement market to digital assets, marking a radical shift in how Americans' savings are managed.
According to the Financial Times, the order is expected this week and will direct federal regulators to remove barriers preventing 401(k) plans from including these non-traditional investments in managed funds. This encompasses digital assets, metals, private loans, infrastructure deals, and corporate buyout funds.
The White House stated: "President Trump is committed to restoring prosperity for everyday Americans and safeguarding their economic future. No decisions should be deemed official, however, unless they come from President Trump himself."
Regulatory Environment Shifts Favorably
Trump’s executive order builds on earlier efforts to ease Bitcoin and crypto regulations. In May, the Department of Labor reversed a rule that discouraged Bitcoin and other crypto in retirement plans. Trump has also supported recent crypto-related bills passed by the House and credited the industry with helping him win the 2024 election.
The order would allow American retirement savers for the first time to allocate funds to digital assets through 401(k) accounts, a stark contrast to the cautious or restrictive stance regulators had taken in previous years.
Market Impact and Major Beneficiaries
The Financial Times reported that the executive order could benefit major private investment firms such as Blackstone, Apollo, and BlackRock, all of which have pinned much of their future growth on investing money on behalf of retirement savers. Specific partnerships include: Blackstone has struck a partnership with Vanguard; Apollo and Partners Group will offer investments to Empower, a large 401k plan sponsor; and BlackRock has already begun working with Great Gray Trust, a third-party manager of retirement savings plans.
These developments indicate that traditional financial giants are actively positioning to facilitate crypto asset investments through retirement accounts. Once the order takes effect, institutional capital flows into Bitcoin and other digital assets could accelerate, further maturing the market. However, specific implementation details and regulatory guidance will depend on the full text of the executive order.