the staff of the Ridgewood blog
Wall Street NY, US President Donald Trump is moving to give everyday Americans broader investment opportunities within their retirement savings, including access to cryptocurrencies, private equity, gold, real estate, and other non-traditional assets.
On Thursday, Trump signed an order directing regulators to explore changes to rules that currently discourage employers from offering such investments in 401(k) retirement accounts. The proposal could open investment opportunities traditionally reserved for wealthy individuals and large institutions, while unlocking new pools of funding for alternative asset firms.
Today’s EOs are “critical steps to ensure digital assets are part of the financial system” says CCI CEO Ji Hun Kim
Balancing Opportunity and Risk
While supporters see the move as a way to diversify retirement portfolios and increase long-term returns, critics warn it could also expose savers to higher risk. Non-traditional assets like private equity often come with higher fees, fewer disclosure requirements, and reduced liquidity compared to publicly traded stocks.
Historically, most US workers have relied on 401(k) plans instead of pensions, with employees contributing a portion of their pay and employers matching a percentage. Government rules require plan providers to consider risk and cost, leading many to avoid complex investments like private equity and cryptocurrency.
Industry Response and Timeline
The Department of Labor now has 180 days to review the rules, meaning any changes may not take effect immediately. Still, major investment firms such as State Street and Vanguard have already partnered with alternative asset managers like Apollo Global and Blackstone to offer private-equity-focused retirement funds.
Trump’s personal business interests include firms tied to cryptocurrency and investment accounts. Earlier this year, the Labor Department rescinded 2022 guidance urging “extreme care” before adding crypto to retirement plans. During Trump’s first term, his administration encouraged private equity in retirement accounts, but uptake was limited due to legal concerns. Former President Joe Biden later revoked that guidance.
If approved, the policy shift could transform how millions of Americans invest for retirement, offering more choices—but also demanding more caution from investors.
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me, but thank I appreciate your concern