President Donald Trump is signing an executive order Thursday to expand 401(k) access to digital and alternative investments, including cryptocurrencies, private equity, and real estate. The order instructs the Securities and Exchange Commission (SEC) to revise regulations that limit such options in defined-contribution retirement plans.
The White House says the move is intended to give American workers more choice and the potential for higher returns through diversification. Labor Secretary Lori Chavez-DeRemer will be tasked with reexamining fiduciary rules regarding these investments and collaborating with Treasury Secretary Scott Bessent and the SEC on further regulatory changes.
The executive action aligns with Trump’s broader effort to position the United States as a leader in digital assets. The administration recently issued a 166-page report recommending comprehensive reforms for cryptocurrency oversight and has reversed several Biden-era policies restricting crypto markets.
Critics note that opening 401(k)s to alternative assets could introduce higher risk, as private equity firms—traditionally limited to large institutional investors—seek fresh capital after a downturn in 2024.
The move also delivers on Trump’s campaign promise to make the U.S. the “crypto capital of the planet.”
Sources:
Discover more from News Facts Network
Subscribe to get the latest posts sent to your email.
