Chiara Bianchi
Former President Donald Trump has signed a groundbreaking executive order aimed at allowing 401(k) retirement plans to include cryptocurrencies, private equity, and other alternative investments.
The directive, revealed by Bloomberg, tasks the Department of Labor, in coordination with the SEC, Treasury Secretary, and other key agencies, to initiate the regulatory framework required to support this transition.
According to the order, the Securities and Exchange Commission (SEC) is asked to explore adjustments to its regulations regarding accredited investor and qualified purchaser designations. These updates are intended to broaden investor access to non-traditional assets within retirement plans.
The document specifically encourages the SEC, in consultation with the Treasury, to identify barriers to alternative asset exposure and consider changes that align with the administrationโs goal of expanding investment opportunities.
Continued Focus on Crypto-Friendly Policy
This is not Trumpโs first move in support of digital assets. Earlier this year, he signed another order promoting U.S. leadership in cryptocurrency, which led to a 168-page report outlining future crypto regulations. He also previously approved a directive to create a national strategic bitcoin reserve and digital asset inventory.
Gerry OโShea, global market insights leader at Hashdex, described the move as a clear indication of the administrationโs commitment to opening up access to digital assets.
โThis is a chance for 401(k) sponsors to partner with crypto experts,โ OโShea said, โand thoughtfully integrate digital assets into retirement portfolios in a balanced and responsible way.โ
A Shift from Biden-Era Crypto Caution
Under President Biden, the Labor Department expressed skepticism about the inclusion of cryptocurrencies in retirement accounts, warning that promises of high returns could mislead less experienced investors.
However, the latest Trump-era order reverses earlier guidance, signaling a major policy pivot back toward embracing crypto in long-term savings vehicles.
Growing Institutional Interest in Crypto
As digital assets continue gaining traction, this executive order may encourage greater institutional adoption by making crypto and alternative investments more accessible to American retirement savers.
