Labor Department drafting legal cover for riskier retirement assets, big firms prepping for inflow surge.
President Donald Trump is preparing to authorize an executive order that would open the $9 trillion U.S. retirement market to Bitcoin and other private assets. The order, expected this week, directs federal agencies to eliminate restrictions that currently prevent cryptocurrencies and private equity from being included in professionally managed 401k plans.
The executive move would reshape how Americans plan their retirements. Most 401k accounts are now limited to mutual funds tied to public stocks and bonds. Under the proposed order, plan managers would be allowed to allocate retirement savings into digital currencies, including Bitcoin, as well as gold and private equity investments.
Trump’s administration says the aim is to expand investment options and help working Americans build long-term financial security. While officials stressed that final decisions remain with the president, they confirmed the White House’s ongoing support for broader crypto adoption.
A key provision is statutory protections for retirement plan administrators. The Labor Department is responsible for developing a “safe harbor” rule that would limit legal exposure to providing less traditional, higher-fee assets. Such protections would push large corporations like BlackRock, Apollo, and Blackstone, which have ambitions of including private products in retirement offerings.
In fact, BlackRock and other investment firms are poised to attract billions of new inflows when the rule is implemented. Their preparations for incorporating private assets into retirement portfolios have been underway, and the executive order is likely to unleash that approach.
Financial analysts remain apprehensive about risk exposure for the retail investor. Such investment vehicles as private equity and digital tokens have limited disclosure, lower liquidity, and have higher fees than other investment options and could potentially expose investors to market volatility and valuation challenges.
This executive order follows a string of legislative moves supporting Trump’s crypto agenda. The House recently passed three bills backed by his administration. The GENIUS Act sets up legal rules for stablecoins, the Clarity Act outlines who can issue them, and the Anti-CBDC Act blocks the Federal Reserve from launching a central bank digital currency.
In May, Trump’s Labor Department rolled back a rule from the Biden administration that discouraged 401k plans from including crypto. That reversal cleared the path for this latest action by eliminating prior federal resistance to including digital assets in retirement savings.
Another development drawing attention is Trump’s view on crypto taxation. A White House official confirmed plans to remove capital gains taxes on small Bitcoin transactions. If approved, this would reduce a common obstacle for casual users and make spending digital assets easier.
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