Trump order will allow alternative assets like cryptocurrencies, private equity in 401(k)s

President Donald Trump is set to sign an executive order on Thursday that would open up alternative assets such as private equity, cryptocurrencies, and real estate to be included in 401(k) retirement plans. This move comes as a major win for the alternative asset industry, which has been advocating for greater access to private assets in defined contribution plans during Trump’s second term in office.

The executive order will direct the U.S. Secretary of Labor to review fiduciary guidance on private market investments in 401(k) and other defined-contribution plans governed by the Employee Retirement Income Security Act of 1974 (ERISA). This federal law establishes minimum standards for most retirement plans.

Private market assets have traditionally been excluded from 401(k) plans due to their high fees, lack of transparency, and longer lockup periods, which are considered riskier investments. However, in 2020, the Department of Labor under the first Trump administration issued guidance stating that private market exposure in 401(k) plans could be appropriate under certain conditions. This guidance was later reaffirmed by the Biden administration.

The presence of private market assets in 401(k) plans has been steadily increasing. Asset managers and plan sponsors have been developing products for retirement vehicles, with Americans collectively holding approximately $8.7 trillion in assets in 401(k) plans as of the first quarter of 2025, according to data from the Investment Company Institute.

In response to the news of the executive order, Bitcoin saw a jump in value, and private equity stocks like Apollo Group experienced slight gains in early trading. Companies like BlackRock and Empower have already started incorporating private investments into their retirement offerings, with BlackRock launching a 401(k) target date fund with a 5% to 20% allocation to private investments, and Empower partnering with asset managers like Apollo to allow private assets in some accounts.

This executive order marks a significant shift in the retirement savings landscape, opening up new opportunities for Americans to diversify their portfolios and potentially achieve higher returns through alternative assets in their 401(k) plans.