Trump's Executive Order Expands 401(k) Investment Options to Include Crypto and Real Estate
US President Donald Trump has signed an executive order allowing millions of Americans to invest in alternative assets like crypto and real estate through their 401(k) plans. This move aims to enhance retirement savings and diversification.
401kRetirementAlternative AssetsCryptoReal EstateReal Estate NewsAug 08, 2025
This move builds on previous actions, including the Trump DOL's prior cancellation of guidance regarding digital assets, which was put in place by the Biden administration. The Biden administration adopted a cautious approach to digital assets, seeking to balance innovation with consumer protection. This stance was guided by an Executive Order issued by the former president in March 2022.
For years, more than 90 million Americans participating in employer-sponsored defined-contribution plans have largely been restricted to traditional investments like stocks and bonds, the White House noted on Thursday. Meanwhile, wealthy investors and retirement plans for government workers have leveraged alternative assets such as private equity, real estate, and digital assets (cryptocurrencies), which offer competitive returns and diversification benefits.
Regulatory hurdles and litigation risks have historically limited ERISA-governed plan fiduciaries from including these alternative assets in their investment portfolios, hindering the growth of workers’ retirement savings.
President Trump’s executive order initiates a reevaluation of the regulatory landscape:
- Department of Labor (DOL) reexamination: The order directs the Secretary of Labor to re-examine DOL guidance on a fiduciary’s duties regarding alternative asset investments in ERISA-governed 401(k) and other defined-contribution plans. The goal is to establish clear parameters for offering asset allocation funds that include these non-traditional funds.
- Inter-agency consultancy: The order also directs the Secretary of Labor to consult with the Secretary of the Treasury, the Securities and Exchange Commission, and other federal regulators to identify and implement parallel regulatory changes to fulfill the order’s purpose.
- SEC’s role: The order directs the SEC to facilitate access to alternative assets for participant-directed defined-contribution retirement savings plans by revising its applicable regulations and guidance.
This executive order is the beginning of President Trump’s broader agenda to enhance financial opportunities and secure retirement for all Americans. The administration believes that expanding investment choices is crucial for building wealth. Furthermore, the initiative aligns with the president’s vision to establish the US as the “crypto capital of the world,” and his commitment to “Make America Wealthy Again” through tax cuts and deregulation, allowing users to save and invest more effectively for their retirement.
The order lays the foundation for a future where average Americans have a wider range of choices to invest for their retirement. This aims to provide opportunities for enhanced returns and diversification, ensuring a “dignified and comfortable retirement for all Americans,” the White House said. However, this will only happen after full implementation, which will require federal agencies to revise rules and regulations, a process that could take months or even years.
Frequently Asked Questions
What are alternative assets?
Alternative assets are investments that do not fall into the traditional categories of stocks, bonds, or cash. They include assets such as private equity, real estate, and digital assets (cryptocurrencies).
Why is this executive order significant?
This executive order is significant because it allows millions of Americans to invest in alternative assets through their 401(k) plans, which were previously limited to traditional investments. This expansion aims to enhance retirement savings and diversification.
What role does the Department of Labor play in this order?
The Department of Labor (DOL) is directed to re-examine its guidance on fiduciary duties regarding alternative asset investments in ERISA-governed 401(k) and other defined-contribution plans. The goal is to establish clear parameters for offering these non-traditional funds.
How will the SEC be involved?
The Securities and Exchange Commission (SEC) is directed to facilitate access to alternative assets for participant-directed defined-contribution retirement savings plans by revising its applicable regulations and guidance.
When will these changes take effect?
The changes will take effect after federal agencies revise rules and regulations, a process that could take months or even years. The order lays the foundation for future implementation.
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