Trump Reportedly to Sign Executive Order Allowing Pensions to Invest in Cryptocurrency and Alternative Assets
A senior White House official revealed that U.S. President Trump will sign an executive order on Thursday, formally allowing private equity, real estate, cryptocurrencies, and other alternative assets to be included in 401(k) retirement savings plans.
This decision marks a significant policy shift in the U.S. pension investment landscape.
Insiders disclosed that Trump’s executive order will direct the U.S. Department of Labor to reassess guidelines for alternative asset investments in 401(k) plans.
The Department will also clarify the government’s fiduciary responsibility stance when offering asset allocation funds, including alternative investments.
Reports indicate the signing ceremony is scheduled for Thursday noon.
This move is seen as a major victory for the alternative asset management industry, which has actively lobbied since the start of Trump’s second term to expand the penetration of private assets in contribution-based retirement plans.
This reform aligns with a series of pro-cryptocurrency moves by Trump. The U.S. Congress recently passed several cryptocurrency-related bills, all strongly supported by Trump. Meanwhile, the Trump family has emerged as a significant investor in the crypto space.
Trump will also instruct the Labor Secretary to collaborate with the Treasury Department, the Securities and Exchange Commission, and other federal regulators to determine whether rule changes are needed to facilitate this initiative.
Historically, private market assets have been excluded from 401(k) plans due to high fees, insufficient disclosure, and long lock-up periods, despite their inclusion in some pension funds and university endowments.
Supporters argue that including private market products in 401(k) plans will offer savers more investment options and higher potential returns. However, this change also brings elevated investment risks and fee burdens, potentially exposing retirement plan managers to legal liabilities.
Notably, as early as 2020 during Trump’s first term, the U.S. Department of Labor stated in an information letter that contribution-based retirement plans could prudently allocate to private assets under certain conditions. The Biden administration, upon taking office, did not revoke this guidance and, to some extent, affirmed it.
In fact, related preparations have been quietly advancing.
According to data from the Investment Company Institute, U.S. individuals held a combined $8.7 trillion in 401(k) accounts as of Q1 2025. Asset managers and plan providers have begun launching alternative asset products tailored for retirement accounts.
In June, the world’s largest asset manager, BlackRock, announced it will launch a target-date 401(k) fund in the first half of 2026, with 5%–20% of assets allocated to private markets.
The second-largest U.S. retirement plan provider, Empower, also stated it will partner with asset managers, including Apollo, to introduce private asset allocations in select accounts later this year.