According to a report by the Financial Times, President Donald Trump is preparing to sign an executive order that would significantly expand the scope of U.S. 401(k) retirement plans by allowing investments beyond traditional assets. This initiative aims to authorize allocation of retirement savings into alternative investment vehicles such as Bitcoin, other cryptocurrencies, gold, and private equity. If implemented, this policy could mark a transformative shift in how Americans manage their retirement funds, potentially opening access to approximately $9 trillion in the U.S. retirement market.
The executive order is expected to instruct federal regulators to eliminate existing barriers that currently restrict 401(k) plans from engaging in non-traditional investments. These include digital assets, precious metals, private loans, infrastructure deals, and corporate buyout funds. A White House statement emphasized President Trump’s commitment to restoring economic prosperity for the average American and securing their financial futures. However, it clarified that no decision should be considered final until the President formally approves the measure.
This proposed move builds upon the current administration’s ongoing efforts to ease regulatory constraints on cryptocurrencies. Earlier in May, the Department of Labor rescinded a rule that discouraged the inclusion of cryptocurrencies in retirement plans. Furthermore, President Trump has recently expressed support for Bitcoin-related legislation passed by the House of Representatives, crediting the crypto industry for contributing to his anticipated success in the 2024 elections.
Financial Times analysis suggests that this executive order could benefit major private investment firms such as Blackstone, Apollo, and BlackRock, which have been positioning themselves to capitalize on retirement savers’ growing interest in alternative assets. Blackstone has formed a partnership with Vanguard, while Apollo and Partners Group have made investment proposals to Empower, a large 401(k) plan sponsor. Additionally, BlackRock has already begun collaborating with Great Gray Trust, a third-party administrator for retirement savings plans. This alignment signals a potential influx of institutional capital into alternative assets within the retirement savings ecosystem.
Source: bitcoinmagazine
