Unlock Your Retirement: Trump’s New Order Opens 401(k)s to Cryptocurrencies and Alternative Investments!

On August 5, 2025, President Donald Trump will sign an executive order allowing 401(k) plans to include alternative assets like private equity, cryptocurrencies, and real estate. This move, according to a senior White House official, aims to review the existing guidelines on investment options for retirement plans governed by federal laws.

This executive order is considered a significant win for the alternative asset industry, which has long advocated for the inclusion of private assets in retirement plans. Bitcoin and private equity stocks responded positively to the news, indicating rising interest in these investments.

Historically, private market assets have been excluded from 401(k) plans due to their high fees, opaqueness, and complex structures. However, interest in these alternatives has been growing. In 2020, the Department of Labor suggested that private market investments could be appropriate under certain conditions, a notion that has gained traction recently.

Investment in 401(k) plans is considerable, with approximately $8.7 trillion held in these accounts by early 2025, according to the Investment Company Institute. Major asset managers, like BlackRock and Empower, are actively adapting their strategies. For instance, BlackRock plans to introduce a new target date fund that will feature 5% to 20% allocations in private investments by 2026.

The inclusion of alternative assets in retirement plans is not just a trend; it reflects changing investment landscapes. As more individuals seek investment diversity, financial professionals are increasingly advising clients to consider these options.

For more insights on retirement investments, you can explore resources from the Investment Company Institute.

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