Financial Times reported today that President Trump is preparing to sign an executive order that would allow 401(k) retirement plans to invest in alternative assets such as gold, private equity, and cryptocurrencies like bitcoin.
“Donald Trump is preparing to open the $9tn US retirement market to cryptocurrency investments, gold, and private equity in a move that would spur a radical shift in the way Americans’ savings are managed,” reported the Financial Times.
According to Financial Times, the order is expected this week and will direct federal regulators to remove barriers preventing 401(k) plans from including these non-traditional investments in managed funds. This includes digital assets, metals, private loans, infrastructure deals, and corporate buyout funds.
“President Trump is committed to restoring prosperity for everyday Americans and safeguarding their economic future,” said the White House in a statement to the Financial Times. “No decisions should be deemed official, however, unless they come from President Trump himself.”
Trump’s move builds on his administration’s earlier efforts to ease bitcoin and crypto regulations. In May, the Department of Labor reversed a rule that discouraged bitcoin and other crypto in retirement plans. Trump has also supported recent bitcoin and other crypto related bills passed by the House and credited the industry with helping him win the 2024 election.
The executive order could benefit major private investment firms such as Blackstone, Apollo, and BlackRock, reported the Financial Times, which have all pinned much of their future growth on investing money on behalf of retirement savers.
“Blackstone has struck a partnership with Vanguard, while Apollo and Partners Group are among firms that will offer investments to Empower, a large 401k plan sponsor. BlackRock has already begun working with Great Gray Trust, a third-party manger of retirement savings plans,” stated Financial Times.