Trump Directs Labor to Ease Crypto, Private Equity in 401(k) Plans

President Donald Trump has issued an executive order directing federal agencies to revise regulations to allow alternative assets such as private equity, cryptocurrencies, and real estate to be included in U.S. 401(k) retirement plans. The administration aims to broaden investment options for American workers, potentially unlocking billions in capital for alternative asset managers and supporting sectors that have backed Trump’s campaign. While proponents highlight the opportunity for diversification and higher returns, critics warn about increased risks, fiduciary challenges, higher costs, and potential legal exposure for advisors and savers. Major investment firms like BlackRock are preparing new funds to incorporate these assets, though adoption may be gradual due to regulatory and market uncertainties. The Department of Labor has six months to assess and clarify rules, and any significant policy changes will take time to implement. This move could transform retirement planning but has sparked concerns about investor protection and the suitability of volatile assets like cryptocurrencies in retirement portfolios.