According to the Financial Times, President Donald Trump is preparing an executive order instructing the Labor Department and the Securities and Exchange Commission to write guidance that lets 401(k) plans invest directly in:
- Cryptocurrencies (bitcoin, ether and approved funds)
- Precious metals such as gold and silver
- Private‑equity and private‑credit vehicles
- Other “alternative” assets, including infrastructure or venture‑capital funds
The order could be signed “in the coming days,” administration officials told the FT.
Why it matters
| Current rule set | Proposed shift |
|---|---|
| 401(k)s are largely limited to mutual funds, ETFs and target‑date funds. | Plan sponsors could allocate a slice of portfolios to alternatives once considered off‑limits. |
| Crypto exposure is possible only through a small number of brokerage‑window options, which many employers restrict. | Direct crypto funds—or even spot holdings held by qualified custodians—could become standard menu items. |
Advocates say adding alts improves diversification and returns, while critics warn of higher fees, illiquidity and volatility.
Context and reaction
- Policy backdrop: The move dovetails with Trump’s broader push to “mainstream” crypto and expand private‑capital markets. Treasury Secretary Scott Bessent has championed broader access, arguing pension savers should share in private‑market upside.
- Industry response: Alternative‑asset giants like Blackstone, Apollo and KKR have long eyed the $9 T defined‑contribution pool but were stymied by liability concerns. The order could give plan fiduciaries legal cover to add small allocations (e.g., 5 %–15 %) to private equity or credit.
- Skeptics’ view: Consumer advocates warn that crypto’s price swings and private‑fund fee structures may be unsuitable for unsophisticated investors. Expect the Labor Department to issue “best‑interest” safeguards and education requirements.
What’s next
The executive order will set deadlines—likely 6–12 months—for the Labor Department (ERISA rules) and the SEC (fund disclosure) to draft guidance. After that, plan sponsors and record‑keepers will decide whether to add new options and how large a slice participants may allocate.
Bottom line: if signed, the order would mark the biggest expansion of 401(k) investment freedom in decades, giving millions of savers direct access to crypto, metals and private markets—while raising fresh questions about risk, fees and fiduciary duty.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
Related:
93.5 % Battery Material Tariff by US: 5 Stocks Poised to Benefit Most From It
How Nvidia Jensen Huang Persuaded Trump to Sell AI Chips to China
Stocks Inch Up as Trump Softens Tariff Talk; CPI and Bank Earnings Ahead
JPMorgan Targets KOSPI 5,000; Short Bets Hit Record
Tariff Shock, or Just a Ripple? June CPI Faces Market That No Longer Flinches
Week Ahead (July 14 – 18): Inflation Check, Big Bank Earnings, Tech Titans
Hegseth Orders Every US Squad Armed by 2026: Defense Stocks Up
Tesla Paid for Elon’s Politics — Will the “America Party” Help or Hurt?
