Trump Signs Executive Order to Allow Crypto and Real Estate in Retirement Accounts
August 7, 2025 — President Donald Trump signed an executive order on Thursday that would allow Americans to invest in cryptocurrency, real estate, and other alternative assets through their 401(k) retirement accounts.
The order directs the Department of Labor to review current restrictions and coordinate with the Treasury Department, SEC, and other agencies to consider regulatory changes that would expand investment options in defined contribution plans.
The change would give fund managers access to a broader range of asset classes beyond traditional stocks, bonds, and cash—potentially unlocking a portion of the $12 trillion U.S. retirement market for alternative investments.
Supporters say the move could improve long-term returns and offer greater diversification. However, critics warn that including speculative assets like cryptocurrency in retirement plans could expose savers to high volatility, limited liquidity, and higher management fees.
In the order, Trump said his administration aims to remove ”regulatory burdens and litigation risks” that have limited innovation in retirement investing. “American workers deserve access to competitive returns and diversified portfolios,” the statement read.
The move builds on earlier steps taken during Trump’s previous term, when the Labor Department issued initial guidance for limited use of private equity in retirement plans. Adoption was minimal, largely due to concerns about legal risks and investor protections.
While implementation will likely take time, some major asset managers are already preparing. BlackRock, the world’s largest asset manager, has announced plans to launch a retirement fund next year that includes private equity and private credit assets.
The executive order signals growing political support for expanding retirement investment choices—but also raises questions about risk management, transparency, and oversight in one of the most critical components of Americans’ financial futures.
Featured image from: cryptoslate.com