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Financial Times announced today that President Trump is set to sign an executive order permitting 401(k) retirement plans to invest in alternative assets like gold, private equity, and cryptocurrencies such as bitcoin.
“Donald Trump is gearing up to unlock the $9tn US retirement market for cryptocurrency investments, gold, and private equity, a decision that could lead to a significant transformation in how Americans manage their savings,” the Financial Times reported.
As per Financial Times, the order is anticipated this week and will instruct federal regulators to eliminate obstacles that hinder 401(k) plans from integrating these unconventional investments in managed funds. This encompasses digital assets, metals, private loans, infrastructure investments, and corporate buyout funds.
“President Trump is dedicated to reinstating prosperity for average Americans and protecting their financial future,” remarked the White House in a statement to the Financial Times. “Nevertheless, no choices should be considered official unless they originate directly from President Trump.”
Trump’s initiative builds on his administration’s previous attempts to relax bitcoin and crypto regulations. In May, the Department of Labor rescinded a rule that discouraged bitcoin and other cryptocurrencies in retirement plans. Trump has also endorsed recent bitcoin and other crypto-related legislation passed by the House and credited the sector for aiding his victory in the 2024 election.
The executive order could advantage large private investment firms like Blackstone, Apollo, and BlackRock, as stated by the Financial Times, which have largely relied on investing funds on behalf of retirement savers for their future growth.
“Blackstone has formed a partnership with Vanguard, while Apollo and Partners Group are among the firms that will present investments to Empower, a major 401(k) plan sponsor. BlackRock has already commenced collaboration with Great Gray Trust, a third-party manager of retirement savings plans,” noted Financial Times.
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