Trump’s New 401(k) Order: Will Crypto and Private Equity Change Retirement Forever?
Last updated 08/08/2025 by
SuperMoney TeamEdited by
Andrew LathamSummary:
President Trump has signed an executive order that could open the door for cryptocurrency, private equity, and real estate investments in 401(k) plans. While the move offers potential new opportunities for retirement savers, experts say employers will be cautious before adding high-risk or complex assets to their plans.
President Trump signed an executive order on Thursday directing the Department of Labor (DOL) to reconsider its guidelines for including alternative assets in 401(k) and other employer-sponsored retirement plans.
The move could make it easier for plan participants to invest in assets like:
- Cryptocurrency
- Private equity
- Real estate
Together, these plans hold $12.2 trillion in U.S. retirement savings. The order also instructs the DOL to clarify how fiduciaries should approach the process of adding funds with alternative investments.
While there are currently no laws prohibiting these assets in 401(k) plans, the Trump administration’s stance marks a shift from the Biden administration, which warned of the risks of crypto investing. Still, the underlying rules of the Employee Retirement Income Security Act (ERISA) remain unchanged — fiduciaries must always act in the best interest of plan participants.
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What this means for employers and workers
Under ERISA, employers and plan administrators must select investments that are prudent, cost-effective, and aligned with employees’ best interests. Even with a green light from the White House, adding crypto or private equity is not a decision to be taken lightly.
Experts note that:
Experts note that:
- Employers face legal risk if investments are deemed imprudent.
- Alternative assets often come with higher fees and less transparency.
- Due diligence requirements will likely be stricter for complex investments.
Arthur Laby, vice dean at Rutgers Law School, says executive orders influence national debate but can’t erase decades of fiduciary law: “They can direct agencies, but fiduciary standards are deeply rooted in the courts.”
Crypto and private equity in 401(k)s — current reality
Despite growing mainstream acceptance of cryptocurrency via exchange-traded funds, it’s still rare in retirement plans. Private equity is even less common, though major firms like BlackRock are working on target-date funds with private equity components.
Investment advisory firm Betterment, which manages $19 billion in retirement assets, offers cryptocurrency portfolios separately but does not include them in its standard 401(k) plans. According to Edward Gottfried, Betterment’s VP, 401(k) investment menus must meet fiduciary standards for fees and performance compared to market benchmarks.
Investment advisory firm Betterment, which manages $19 billion in retirement assets, offers cryptocurrency portfolios separately but does not include them in its standard 401(k) plans. According to Edward Gottfried, Betterment’s VP, 401(k) investment menus must meet fiduciary standards for fees and performance compared to market benchmarks.
Why employers will proceed with caution
Adding alternative investments could bring diversification, but it also adds complexity and risk. Jerome Schlichter, a lawyer known for retirement plan litigation, says fiduciaries will need to take a “much deeper dive” into fees, underlying assets, and investment structures before making them available.
Labor Secretary Lori Chavez-DeRemer supports the order, saying it promotes flexibility and ends “one-size-fits-all” approaches. The order also directs her to work with the Treasury Department, the SEC, and other regulators to explore additional rule changes.
Labor Secretary Lori Chavez-DeRemer supports the order, saying it promotes flexibility and ends “one-size-fits-all” approaches. The order also directs her to work with the Treasury Department, the SEC, and other regulators to explore additional rule changes.
The bottom line
The executive order is more of a starting signal than a final rule change. While it could expand retirement investment choices, most employers are expected to move slowly — carefully weighing risks before adding volatile or opaque assets like cryptocurrency or private equity to their 401(k) menus.
Frequently asked questions
Can my employer add cryptocurrency to my 401(k) now?
Yes, but it’s rare. While no law bans it, most employers avoid crypto due to volatility and fiduciary risk.
Does the executive order force employers to add these assets?
No. It only directs regulators to reconsider guidelines. Employers still decide what to offer.
Will this change how ERISA works?
No. ERISA’s core fiduciary duties remain the same — investments must be prudent and in the best interest of participants.
When might we see private equity in 401(k) plans?
Some large financial firms are developing products that include private equity. The first could arrive as early as next year, but widespread adoption will take longer.
Key takeaways
- President Trump signed an executive order to expand 401(k) investment options to include crypto, private equity, and real estate.
- The Department of Labor will re-evaluate fiduciary guidelines and consult other federal agencies.
- Employers are likely to move cautiously due to fiduciary risks and legal exposure.
- Alternative assets may offer diversification but also come with higher fees and less transparency.
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