- Trump’s order asks the Labor Department to revisit ERISA asset rules
- Bitcoin ETFs can join 401(k) alongside private equity
- Agencies will coordinate on updated retirement plan policies
On Thursday, President Donald Trump will sign an executive order allowing employees to add alternative assets such as Bitcoin ETFs or private equity to their 401(k) plans. The order asks Labor Secretary Lori Chavez-DeRemer to review the ERISA rules established in 1974 and consider expanding the types of investments that retirement accounts can hold. This change aims to include digital assets alongside traditional options in long-term savings.
Trump Push for Crypto in Retirement Plans
The core of this initiative centers on ERISA, the Employee Retirement Income Security Act of 1974, which currently limits the spectrum of allowable investments in employer-sponsored plans. Under Trump’s order, the Department of Labor will reevaluate those restrictions, potentially authorizing alternative assets that traditional fund managers have largely shunned. A senior White House official confirmed that private equity firms and Bitcoin ETF providers stand to gain significant inflows once plan sponsors adopt revised ERISA guidance. This shift not only reflects a broader acceptance of cryptocurrency but also aligns with past efforts in Trump’s first term, when regulators briefly explored similar possibilities before the rollback under President Biden.
Updating ERISA Guidance and Trump’s Executive Order
To ensure a cohesive regulatory framework, Trump’s order directs the Department of Labor to collaborate with the Treasury and the Securities and Exchange Commission. This inter-agency task force will assess complementary policy adjustments, from tax treatment of digital assets to disclosure requirements for alternative investments. The SEC is specifically instructed to consider rule changes that would permit plan participants to allocate a portion of their retirement funds to non-traditional vehicles. Bloomberg first reported that this coordinated approach aims to create a unified standard across agencies, minimizing confusion for employers and retirement-plan administrators while maximizing investor protection and transparency.
Trump Administration’s Broader Crypto Strategy
This latest executive order builds on a series of actions by the Trump administration to reduce regulatory barriers for crypto enterprises. Earlier this year, Trump signed legislation establishing a federal framework for stablecoins and issued an order to create a dedicated Bitcoin and digital assets reserve. Simultaneously, the Department of Justice’s enforcement against cryptocurrency firms was curtailed. These measures, coupled with Trump’s vocal support for blockchain innovation, have encouraged private equity and hedge funds to launch crypto-focused products. The president’s own ventures—including a high-profile memecoin debut—and his sons’ foray into Bitcoin mining and decentralized finance apps underscore the administration’s personal and political commitment to digital assets.
Conclusion
By integrating cryptocurrency and private equity into retirement accounts, Trump’s executive order represents a significant pivot in U.S. investment policy. This initiative revives discussions from 2020 and leverages inter-agency collaboration to modernize ERISA guidelines. As alternative asset managers anticipate new inflows and plan participants gain expanded choices, the move could redefine how Americans save for retirement in the digital age.
Disclaimer
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