Trump Opens Path for Crypto and Alternative Assets in Retirement Accounts

President Donald Trump has directed U.S. regulators to explore changes that would allow Americans to use retirement accounts like 401(k)s to invest in cryptocurrencies, private equity, real estate, gold, and other non-traditional assets. The move is seen as an effort to broaden investment opportunities for everyday workers and unlock new sources of capital for alternative investment firms.

The directive, issued on Thursday, instructs the Department of Labor to review existing rules that may discourage employers from offering such options in workplace retirement plans. The review period will last 180 days. While changes aren’t expected immediately, the initiative signals a shift in how retirement savings might be structured going forward.

Traditional employer-sponsored retirement plans in the U.S. are primarily based on employees contributing to 401(k) accounts, which are typically limited to lower-risk, liquid investments. Historically, rules required plan managers to prioritize asset safety and cost-effectiveness, which made riskier assets like crypto or private equity less accessible to most workers.

Some major investment firms—including State Street and Vanguard—have already formed partnerships with alternative asset managers like Blackstone and Apollo Global, anticipating greater demand for diversified retirement portfolios. Critics, however, warn that loosening restrictions could expose less-experienced investors to higher fees and market volatility.

The announcement aligns with Trump’s past efforts to deregulate retirement investment options, including previous guidance encouraging private equity use in retirement plans—later reversed under President Joe Biden. Trump also has business ties to the crypto sector, adding a layer of scrutiny to the policy’s implications. In May, the Department of Labor rescinded 2022-era guidance that cautioned firms against adding crypto to retirement offerings.

Source: BBC