Trump Opens 401(k) Plans to Crypto, Private Equity, Real Estate, and Other Alternative Assets #
President Donald Trump has signed a sweeping executive order directing federal agencies—including the Department of Labor and SEC—to revisit fiduciary guidance under ERISA. This change paves the way for employer-sponsored defined-contribution plans like 401(k)s to offer alternative investments such as cryptocurrencies, private equity, real estate, commodities, infrastructure funds, and digital assets The administration says the move aims to “relieve the regulatory burdens and litigation risk” that previously restricted such offerings, democratizing access to asset classes that historically benefited only institutional or high-net-worth investors. It calls for coordinated rule-making within 180 days to clarify fiduciary duties, introduce potential safe harbours, and enable inclusion of these assets in participant‑directed retirement funds
Supporters tout broader diversification opportunities and enhanced long-term returns—for instance, professional managers claim private equity could add years’ worth of retirement income, and digital assets may appeal to younger savers Yet critics warn of serious risks, including the volatile nature of cryptocurrencies, opaque private market assets, high fees, low liquidity, and potential legal exposure for plan fiduciaries