The U.S. President Donald Trump will be signing an executive order today, allowing private equity, real estate, cryptocurrency, and other alternative assets into 401(k) retirement plans. The move aims to diversify retirement savings, which was limited to traditional investments like mutual funds, exchange-traded funds (ETFs), index funds, money market funds, bonds, and individual stocks.
According to a Bloomberg article, the new bill aims to allow private equity, real estate, cryptocurrency, and other alternative assets in 401(k)s. This move marks a major victory and pivoting point for industries, which will benefit from over $12.5 trillion held in retirement accounts.
In the U.S., 401(k)s are company-sponsored retirement accounts in which employees can contribute a certain percentage of their paychecks. Employees can generally withdraw amounts from these accounts at the age of 59.5 years.
With this order, the Labor Department will reevaluate guidance around alternative asset investments in retirement plans. The department will also be looking over funds allocation and alternative holdings.
Moreover, Trump will also direct Labor Secretary Lori Chavez-DeRemer to work with counterparts at the Treasury Department, Securities and Exchange Commission (SEC), and other federal regulators to discuss the order. The SEC will particularly be tasked to facilitate access to alternative assets.
Trump’s Yet Another Cheer for Crypto
The move highlights Donald Trump’s yet another cheering for cryptocurrencies. In later 2024 and throughout his election campaigns, Trump has been much vocal for cryptocurrencies. After taking over the White House, he has made numerous efforts to champion the cryptocurrency industry.
Last month, Trump hosted the “Crypto Week” to discuss three major crypto-related bills at the White House and signed the first federal law to regulate stablecoins. He also named venture capitalist David Sacks to be the first-ever White House official for artificial intelligence (AI) and crypto matters.
Also read: Indian Govt sends 44K emails for undeclared crypto income
