Trump to Revamp 401(k)s: Crypto, Real Estate, and Private Equity in Retirement Plans

Trump's Bold Move to Expand 401(k) Investments

President Donald Trump is taking a significant step in reshaping the U.S. financial landscape by preparing to sign an executive order that would allow alternative assets such as cryptocurrencies, real estate, and private equity to be included in 401(k) retirement plans. This move could unlock billions of dollars in new capital and mark one of the most substantial changes to retirement investment policies in recent decades.

The executive order will direct the Department of Labor, the Securities and Exchange Commission (SEC), and the Treasury to reassess current regulations under the Employee Retirement Income Security Act of 1974 (ERISA). The goal is to create a clear and compliant framework for these new investment options, making it easier for individuals to diversify their retirement portfolios beyond traditional stocks and bonds.

According to reports, the order is expected to be signed on Thursday, August 7, and could open up access to America’s $12.5 trillion 401(k) market for a wide range of alternative assets. If implemented, this change could have far-reaching implications, especially for the cryptocurrency industry, which has long faced barriers due to its volatility and regulatory uncertainty.

The Impact on Cryptocurrency

Historically, corporate 401(k) plans have been hesitant to include assets like cryptocurrencies due to their high risk, lack of liquidity, and legal ambiguity. However, Trump’s executive order could change that overnight. By allowing digital assets to be part of retirement accounts, the move could lead to a surge of institutional and individual investments into crypto markets. This could potentially make digital assets a mainstream investment class in the U.S. for the first time.

The SEC will need to address how to classify and monitor these riskier and less liquid assets. Meanwhile, the Treasury will face challenges in updating tax rules to accommodate the inclusion of alternative assets in retirement funds. The Department of Labor may also need to draft a new “safe harbor” rule to protect plan administrators from liability.

A Continued Pro-Crypto Agenda

This executive order is just the latest in a series of pro-crypto actions taken by Trump since he returned to the White House in January 2025. In his first week, he signed a directive ordering agencies to develop a new crypto regulatory framework. His administration has also repealed several Biden-era restrictions on crypto innovation and appointed pro-crypto lawmakers to key regulatory positions.

These efforts have already led to tangible results. The stablecoin bill is now law, and the crypto market structure bill is close to final approval. Together, these measures are laying the foundation for a more regulated and robust crypto economy in the U.S.

With this latest push to bring crypto into retirement portfolios, Trump may be setting the stage for one of the biggest adoption waves yet. As the financial landscape continues to evolve, the inclusion of alternative assets in 401(k) plans could redefine how Americans save and invest for the future.

Potential Challenges and Considerations

While the potential benefits of this executive order are significant, there are also challenges that regulators must navigate. The SEC will need to ensure that investors are adequately protected when dealing with high-risk assets. The Treasury will have to address tax implications, while the Department of Labor must establish guidelines that balance innovation with consumer protection.

Additionally, the long-term impact of this policy shift remains to be seen. Will it lead to increased financial stability for retirees, or will it expose them to greater risks? These questions will likely shape the ongoing debate around the role of alternative assets in retirement planning.

As the U.S. moves toward a more diversified retirement investment model, the coming months will be critical in determining how effectively these new rules are implemented and how they affect both individual investors and the broader financial system.