Trump opens door for crypto in retirement accounts

August 7, 2025

President Donald Trump has ordered regulators to explore ways to ease restrictions on retirement accounts (401ks) to allow investments in alternative assets like cryptocurrencies, private equity, and gold. This initiative aims to give average Americans access to investment opportunities typically available only to wealthy individuals, while also opening new funding sources for these alternative sectors. Critics warn this could expose retirement savers to greater risks.

Who is affected

American workers with 401k retirement accounts
Employers who offer workplace retirement plans
Investment management companies like State Street and Vanguard
Alternative asset managers such as Apollo Global and Blackstone
Firms in cryptocurrency, private equity, property, and gold sectors
Retirement savers who might face increased investment risks

What action is being taken

President Trump is ordering regulators to find ways to change rules limiting alternative investments in 401ks
The Department of Labor is conducting a 180-day review of relevant rules
Investment management firms are forming partnerships to create private-equity focused retirement funds
The Department of Labor recently rescinded 2022 guidance that urged caution with cryptocurrency in retirement accounts

Why it matters

This could give average workers access to investments previously limited to wealthy individuals and institutions
It opens untapped pools of funding for alternative asset sectors
Most U.S. employers no longer offer traditional pensions with guaranteed payouts, making 401k investment choices more consequential
The change could increase risk exposure for retirement savers
Higher fees and fewer disclosure requirements associated with alternative investments could affect retirement savings outcomes

What's next

No explicit next steps stated in the article beyond the Department of Labor's 180-day review period.

Read full article from source: BBC