President Trump Plans To Open 401(k)s To Bitcoin, Crypto, Gold, And Private Equity: FT
President Trump is making waves in the financial world with his latest executive order, as reported by the Financial Times today. The order is set to allow 401(k) retirement plans to invest in alternative assets like gold, private equity, and even cryptocurrencies such as bitcoin.
The move is expected to be a game-changer for Americans’ savings, with the potential for a radical shift in how retirement funds are managed. The executive order, anticipated to be issued this week, will instruct federal regulators to eliminate barriers that currently prevent 401(k) plans from including these non-traditional investments in managed funds.
The Financial Times reported, “President Trump is committed to restoring prosperity for everyday Americans and safeguarding their economic future.” However, the White House clarified that no decisions should be considered official unless directly from President Trump himself.
This initiative follows previous efforts by the Trump administration to relax regulations on bitcoin and other cryptocurrencies. In May, the Department of Labor reversed a rule that discouraged the inclusion of bitcoin and crypto in retirement plans. Additionally, Trump has supported recent bills related to bitcoin and crypto passed by the House, attributing the industry to his victory in the 2024 election.
The potential impact of this executive order extends to major private investment firms such as Blackstone, Apollo, and BlackRock. These firms, which heavily rely on investing retirement savers’ money, could see significant growth opportunities as a result of this policy change.
Blackstone has already formed a partnership with Vanguard, while Apollo and Partners Group are set to offer investments to Empower, a prominent 401(k) plan sponsor. BlackRock has also begun collaborating with Great Gray Trust, a third-party manager of retirement savings plans.
