Trump 401(k) Order: New Paths for Crypto, Private Equity and Real Estate
Today, retirement planning is not just a name for savings, but has become a game of smart investments. Now a big news has come in this race — former President Donald Trump has signed an executive order that is opening the way for new investment options in 401(k) retirement plans, such as cryptocurrency, private equity and real estate. This move can be an emotional and financial turning point for investors, as retirement savings of $12.2 trillion can now explore new avenues. But experts are saying that employers will take a careful step in this new trend.
Impact of Trump 401(k) Executive Order
This executive order of Trump directs the Labor Department to re-evaluate its fiduciary guidelines so that it is easier to include alternative assets like crypto, private equity and real estate in retirement plans. This means that employers will have more flexibility, but their responsibility will also increase. This order is a big shift in you, as the Biden administration had warned about the risks of investing in crypto, which the Trump administration withdrew.
Role of ERISA Law and Fiduciary Duty

The important thing is that the base law of retirement accounts, i.e. Employee Retirement Income Security Act (ERISA), is still the same. ERISA mandates fiduciaries to act in the best interest of employees and choose prudent investment options. That means, even if there is an executive order, employers must prove that their selected investments are safe and reasonable.
Is Bitcoin Safe for Retirement Plans?
The question now arises whether Bitcoin or other volatile digital assets are prudent investments for retirement planning? This is a topic of debate. Crypto has now reached mainstream investors through exchange-traded funds (ETFs), but its inclusion in 401(k) plans is still rare. Private equity is also not easily accessible to retirement investors, but big financial players like BlackRock are introducing new products in this space, including a target-date fund that is expected to launch next year.
Expert Opinions on Trump 401(k) Order
Rutgers Law School Vice Dean Arthur Laby says executive orders are an “important ingredient” that shapes the legal landscape of fiduciary duty. But he also says the orders do not replace decades-old fiduciary law. That means even if the orders are influential, the legal safeguards are still in place. Employers’ greatest fear is that they may be sued if an investment option turns out to be imprudent or too expensive. This is why experts believe sudden and large-scale changes in 401(k) menus will not be expected.
Betterment and Industry Reaction
Investment advisory firms like Betterment that handle employer 401(k) plans do not include crypto in their default offerings. Edward Gottfried, Vice President at Betterment, says 401(k) plan management follows strict fiduciary rules, in which every investment is evaluated based on fair fees and market-aligned performance. Now that Trump’s executive order is encouraging alternative assets, Labor Secretary Lori Chavez-DeRemer has also supported the move, saying the step will improve flexibility and eliminate unfair one-size-fits-all approaches.
Challenges of Private Equity and Real Estate Investments
But if employers start seriously investing in alternatives, they will have to do more vetting. Private equity is private in nature, with less transparency. Jerome Schlichter, a known attorney who handles retirement plan mismanagement cases against employers, says fiduciaries will need to do deep research and investigation before adding such funds — including fees, structure, and risk factors.
Trump 401(k) Order Future Developments

Another interesting aspect of Trump’s order is that it asks the Labor Secretary to consult with Treasury Secretary Scott Bessent, the Securities and Exchange Commission (SEC) and other regulators to align regulatory changes. Betterment’s Gottfried says this executive order is like a “starting gun” — it’s just the beginning, but the journey ahead could be quite complex.
Conclusion: The New Era of Trump 401(k) Order
Taken together, this executive order adds a new dimension to retirement planning. Assets like crypto, private equity and real estate are high-risk, but if managed correctly, they can be a golden opportunity for long-term growth. The challenge for employers will be to find a balance between innovation and prudence. And the message for investors is clear — stay open to new options, but make decisions based on your risk appetite.
Disclaimer:
This article is for informational purposes only. Do not take any financial or investment advice given here without consulting your financial advisor. Investments come with market risks.
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