President Donald Trump signed a new executive order on Thursday that could bring big changes to how Americans save for retirement.
The order pushes federal agencies to allow workers to invest in riskier assets like cryptocurrency, private equity, and real estate through their 401(k) plans.
Right now, retirement plans mostly include stocks, bonds, and mutual funds. But under this plan, workers could eventually have more choices—if the Department of Labor and other federal agencies rewrite the rules. That process will take months or even longer.
According to AP News, this change could mean a lot for both the $5 trillion private equity industry and the fast-growing crypto world.
These groups have long wanted access to retirement savings, and this move gives them a major boost. It also reflects Trump's support from crypto firms during his 2024 campaign.
"The long-term benefits of bitcoin are becoming clearer," said Cory Klippsten, CEO of Swan Bitcoin. "Younger workers especially want something solid, not savings that slowly lose value."
While some investment companies are cheering the order, it won't affect retirement plans right away.
Companies like Vanguard and Fidelity will need time to build new funds, and most employers will be slow to update their offerings.
Trump’s order opens risky retirement plans to crypto & private equity—investments full of fees, while his family is positioned to profit from it.https://t.co/efZYcrRhQK pic.twitter.com/i7fBTui0eS
— Accountable.US (@accountable_us) August 8, 2025
Bitcoin Surges After Trump Opens Door to Crypto in Retirement Plans
The rule change would redefine what counts as a "qualified" 401(k) investment under a law called ERISA, or the Employee Retirement Income Security Act of 1974.
This law protects workers by making sure retirement options are chosen in their best interest—not just for Wall Street.
Cryptocurrency, especially bitcoin, has had a bumpy ride. It's known for big price swings, sometimes rising or dropping 10% in a single day, CBS News said. But interest in crypto is high—especially among young, tech-savvy Americans.
Bitcoin jumped 2% to $116,542 on the day of Trump's announcement and has nearly doubled in value since his election.
Private equity firms, which usually invest in private companies and hold assets for many years, are also expected to benefit. These types of investments typically have higher returns than regular stock markets but are harder to sell quickly.
Bryan Corbett, president of the Managed Funds Association, welcomed the move. "We're ready to help build a system that gives retirement savers more options and protection," he said.
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