A Radical Shake-Up for America’s $9 Trillion Retirement Market
Donald Trump is preparing to open the floodgates for crypto and alternative assets in America’s retirement system. According to the Financial Times, the former president will soon sign an executive order allowing workers to invest their 401(k) savings—currently valued at over $9 trillion—into crypto, gold, and private equity. The order could be signed as early as tomorrow, marking a potential historic shift in how Americans build wealth.
Until now, 401(k) plans have largely been limited to traditional investments like stocks and bonds. But Trump’s new directive would task regulators with removing legal roadblocks, so fund managers can start offering access to digital assets, private loans, infrastructure deals, and even corporate buyout funds.
Crypto Gains Presidential Favor
In a statement to FT, the White House said:
The executive order builds on Trump's pro-crypto stance, which has included rolling back regulatory pressure on exchanges and throwing full support behind recent digital asset legislation. Just last week, the House passed three key crypto bills—all with Trump’s backing—as part of the ongoing push to integrate blockchain finance deeper into the U.S. economy.
For Trump, the crypto industry isn’t just an economic talking point—it’s political capital. He credits it with boosting his odds in the 2024 election, contrasting it with what he frames as “Biden-era overregulation.” This executive order is Trump’s way of delivering on campaign promises.
Private Equity Poised to Cash In
The executive order doesn’t stop with crypto. It also sets the stage for private market giants like Blackstone, Apollo, and BlackRock to jump into the 401(k) arena. These firms are already building partnerships with major retirement providers, including Vanguard, Empower, and Great Gray Trust, to push their high-fee, high-upside products into everyday savings plans.
The Department of Labor will be instructed to create legal safeguards (a “safe harbour”) that protect plan administrators from lawsuits over offering non-traditional, higher-risk assets. That could greenlight hundreds of billions in inflows to private equity and alternative investments from ordinary savers.
Critics Sound the Alarm Over Transparency and Risk
Still, this overhaul comes with serious risks for retail investors. Private funds don’t trade daily, come with high fees, and often rely on leverage and opaque pricing models. For the average American, this is uncharted territory, far different from the simplicity of index funds.
And yet, none of that appears to deter Trump.
A Gold Rush or a Gamble?
The Department of Labor had previously cautioned retirement managers under Biden against crypto exposure, citing volatility and risk. Trump’s administration reversed that guidance, effectively clearing the path for this seismic shift.
Trump’s executive order could reshape retirement savings for generations, unleashing a new era of diversification—or speculation, depending on whom you ask. For now, fund managers, crypto advocates, and private equity sharks are all circling. Billions are at stake, and the door to the next financial frontier may swing open tomorrow.
