19.07.2025 08:38
President Donald Trump is poised to issue an executive order this week, potentially revolutionizing the $9 trillion US retirement market by allowing millions of Americans to invest their 401(k) savings in cryptocurrencies, gold, and private equity for the first time. This groundbreaking move could significantly alter how the approximately 70 million Americans participating in these plans build their retirement wealth.
The initiative, first reported by the Financial Times, will task federal agencies with dismantling regulatory hurdles that currently restrict 401(k) plans from offering these alternative investment options. Sources close to the matter have confirmed the imminent signing of the executive order, possibly as early as this week. This decision will impact the substantial US retirement system, encompassing over 715,000 workplace programs holding a combined $8.9 trillion in 401(k) assets, according to the Investment Company Institute. Currently, most workers are limited to investing in traditional stock and bond mutual funds.
The upcoming executive order will direct both the Department of Labor and the Securities and Exchange Commission to address existing regulatory obstacles. This will grant plan administrators access to a wider array of assets, including digital currencies such as Bitcoin and Ethereum, precious metals like gold, and private equity investments – opportunities previously largely inaccessible to the average investor. A White House spokesperson, while emphasizing President Trump's commitment to bolstering the economic well-being of ordinary Americans, appropriately cautioned that official announcements would originate solely from the President himself.
This executive order builds upon previous actions taken by the Trump administration. In May, the Labor Department rescinded Biden-era guidance that advised against including cryptocurrency investments in retirement plans, reversing warnings issued in 2022 regarding the risks associated with digital assets. The reversal of this cautious approach reflects a significant shift in policy.
In anticipation of these potential regulatory changes, major financial institutions are actively positioning themselves. BlackRock, for instance, has collaborated with retirement plan managers to expand access to private investments for everyday savers. Meanwhile, Apollo Global Management and Blackstone are similarly engaged with prominent 401(k) providers to develop innovative investment products, showcasing Wall Street's readiness for the expected transformation of the retirement investment landscape.
