Key Metrics
14.53
Heat Index-
Impact LevelMedium
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Scope LevelNational
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Last Update2025-08-10
Event Overview
The executive order represents a regulatory shift aimed at diversifying retirement savings vehicles by introducing alternative asset classes such as private equity and cryptocurrencies. This policy reflects broader efforts to redefine retirement investment frameworks, balancing potential growth opportunities against risks associated with less-liquid and volatile assets, while challenging traditional pension management norms.
Collect Records
Trump Signs Executive Order Allowing 401(k) Plans to Invest in Private Equity and Cryptocurrency
On [date not specified], former U.S. President Donald Trump signed an executive order enabling 401(k) retirement savings plans to invest in private equity and cryptocurrencies. The goal of the policy is to broaden investment options for retirement savers beyond traditional publicly traded stocks, bonds, and mutual funds. Under the order, the U.S. Department of Labor is instructed to adjust regulations to allow plan administrators to allocate a portion of participants’ funds into private equity funds and digital currencies. Supporters see this as a way to democratize access to higher-return asset classes, while critics warn of the associated risks, including high volatility, limited liquidity, complex structures, and potentially higher fees. The order does not require 401(k) plans to offer these options; plan sponsors must still act in participants’ best interests and disclose risks appropriately.