Ken Sweet, Associated Press
NEW YORK (AP) – Millions of Americans saving for retirement through their 401(k) accounts can put their money into higher-risk private equity and cryptocurrency investments, according to an executive order signed by President Donald Trump on Thursday.
It doesn’t change anytime soon how people invest a portion of their work revenue. Federal agencies will need to rewrite rules and regulations to allow extended choices, which will take more than a few months to complete. But once completed, employers were able to provide workers with a wide range of mutual funds and investments, according to the White House. New plans can invest in alternative assets, particularly private equity, cryptocurrency and real estate.
The Republican President’s order directs the Labor Bureau and other agencies to redefine what is considered qualifying assets under the 401(k) retirement rules.
The American Resignation Plan complies with the Act known as the Employee Retirement Income Security Act of 1974 and is known as ERISA. Employers are legally required to provide retirement options that are in the best interest of employees, rather than Wall Street. Most American retirement plans consist of stock and bond investments, and consist of a much lower range to some extent with cash, such as gold, and large items such as gold.
Trump’s move has rewarded both the $5 trillion private equity industry, which has been hoping to compete for roles in his retirement plan for decades, and the cryptocurrency industry, which has supported Trump’s 2024 campaign, which aimed to embrace more mainstream Americans.
Bitcoin prices rose 2% to $116,542 on Thursday, almost doubled since Trump was elected.
Under Democratic President Joe Biden, federal regulators were to treat cryptocurrency investments with “extreme caution” because of the extreme volatility of crypto. It is not uncommon for Bitcoin, Ethereum and other big cryptocurrencies to go up or down 10% in a day, but a 2% or 3% daily move in the stock market is considered historic.
For the cryptocurrency company that has donated millions to Trump’s campaign and his inauguration, one goal was to qualify their industry under ERISA. Coinbase, one of the largest crypto companies in the United States, was also a major donor to Trump’s military parade in Washington this summer. Under Trump, the Securities and Exchange Commission has dropped a lawsuit against Coinbase that said the Biden administration should treat crypto as security.
Cryptography is particularly popular among young Americans. Although volatile, Bitcoin has generally moved upwards since it was created by anonymous programmers almost 20 years ago.
“It was inevitable that Bitcoin would advance to the US 401(k)S,” said Collie Kricksten, CEO of Swan Bitcoin.
Private equity companies rely heavily on high-net individuals and state and private pension schemes that have very long investment timelines. However, access to American retirement assets opens a deep cash pool.
Blackstone CEO Steve Schwarzman tells investors back in at least 2017 that it is a “dream” for him and the industry to be able to pull out these retirement assets. Previous Republican and Democrat administrations agree that private equity investments that are more risky, more expensive and less liquid than traditional equity and bond market mutual funds should not be included in the 401(k) plan.
Original issue: August 7, 2025, 4pm
