Trump Order Expands 401(k)s to Alternatives

President Donald Trump is expected to sign an executive order permitting 401(k) retirement plans to invest in a broader range of alternative assets, including cryptocurrencies, gold, private equity, and private credit. This directive will require federal regulators to remove current barriers to these non-traditional investments, representing a significant expansion of options for American savers. The move builds on earlier efforts to integrate digital assets into mainstream finance, such as rescinding rules that discouraged crypto investment. Major firms like Blackstone, Apollo, and BlackRock are preparing to capitalize on these changes, with BlackRock planning target-date funds with private assets by 2026. The initiative has sparked debate among financial experts about the suitability and risks of complex alternative assets in retirement portfolios. Supporters see enhanced diversification and return potential, while critics highlight higher fees, illiquidity, and greater risks for retail investors.