US President Donald Trump has directed regulators to explore ways to make it easier for Americans to invest retirement savings in cryptocurrencies, private equity, property, gold and other non-traditional assets.
On Thursday, Trump ordered the Department of Labor to review rules that may deter employers from offering such options in 401k retirement accounts. The move, he said, aims to “give everyday workers new access” to investments traditionally limited to wealthy individuals and institutions.
Critics warn the plan could expose savers to greater risks, as alternative assets often have higher fees, lower liquidity and fewer disclosure requirements.
The Department of Labor has 180 days to complete its review, and changes are unlikely to be immediate. However, major retirement account providers like State Street and Vanguard have already partnered with alternative asset managers to launch private-equity focused funds.
The move follows the department’s May decision to rescind 2022 guidance urging “extreme care” before adding crypto to retirement investment menus.