Trump Signs Executive Order Allowing Crypto, Private Equity, Real Estate in 401(k) Plans

President Donald Trump signed an executive order in August 2025 that allows 401(k) retirement accounts to invest in alternative assets such as cryptocurrency, private equity, and real estate, marking a major policy shift aimed at broadening investment options for everyday American workers. This order directs the Department of Labor to revise fiduciary guidelines and collaborate with the SEC to facilitate the inclusion of these alternative assets in retirement portfolios, potentially unlocking trillions of dollars in retirement savings for new types of investments. The move is part of Trump's broader economic strategy to promote U.S. leadership in cryptocurrency innovation and to address the investment opportunity gap between ordinary savers and wealthy investors. While proponents argue this will diversify portfolios and increase potential long-term returns, critics warn that the speculative nature and regulatory challenges of cryptocurrencies could introduce significant risks to retirement savings. The order contrasts with the previous administration's cautious stance on crypto, signaling a deregulatory approach that aims to reduce litigation risks and encourage investment innovation. Overall, this policy could reshape the retirement investment landscape by integrating digital assets into mainstream retirement planning.