Yeliz Akmaca 
U.S. President Donald Trump has announced his plan to sign an executive order that would open the door for 401(k) retirement accounts to invest in private equity, real estate, cryptocurrencies, and other alternative assets. The signing is expected to take place Thursday.
401(k) Accounts May Soon Include Crypto, Real Estate, Private Equity
Trump’s proposed order aims to expand the investment options available within U.S. 401(k) plans. This shift would allow retirement accounts to include alternative assets such as digital currencies, private equity funds, and real estate holdings. The Department of Labor and the Securities and Exchange Commission (SEC) are expected to draft new rules aligned with this policy. The move could reshape the $12.5 trillion U.S. retirement market.
In addition, the executive order will direct the Department of Labor to reevaluate its guidance on alternative investments under ERISA. The fiduciary framework for investment managers will also be clarified, potentially broadening their authority to allocate retirement savings into non-traditional assets.
New Opportunities and Risks in Retirement Portfolios
If enacted, this order could significantly diversify the investment landscape for 401(k) holders. Investors would no longer be limited to traditional stocks and bonds. Instead, they could gain exposure to high-growth sectors like digital assets and real estate. This could be especially attractive to younger investors seeking long-term growth through crypto.
However, the inclusion of alternative assets also introduces volatility, illiquidity, and increased management fees. Some private equity firms express concern that association with crypto could impact their reputation. Regulatory agencies will carefully review the rules to balance innovation with investor protection.
Ultimately, the order could usher in a new era of diversification in U.S. retirement savings—with both great potential and real challenges ahead.
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