Chris Curl,
Editor
Aug. 14, 2025
On August 7, 2025, President Donald Trump signed what might be the biggest shake-up to retirement plans in decades.
The order—called “Democratizing Access to Alternative Assets for 401(k) Investors”—opens the door for 90+ million Americans with employer-sponsored retirement plans to invest in things they’ve never had easy access to before: cryptocurrency, private equity, real estate, commodities, infrastructure projects, and new lifetime income products.
The goal? Give everyday retirement savers access to the kinds of investments that have historically been reserved for wealthy individuals and big institutions—when plan fiduciaries believe it makes sense for participants’ long-term returns.
What Counts as “Alternative Assets”
The order lays out six main categories:
- Private market investments – private equity, private credit, and other non-public financial instruments.
- Real estate – both direct holdings and debt backed by property.
- Digital assets – professionally managed funds that invest in cryptocurrencies and other blockchain-based assets.
- Commodities – physical or financial commodity investments.
- Infrastructure projects – financing large-scale public works.
- Lifetime income strategies – products that help manage longevity risk in retirement.
How Fast Could This Happen?
The clock is already ticking. Federal agencies have 180 days—until February 3, 2026—to update regulations. The Labor Department will revisit existing ERISA rules, and the SEC may loosen “accredited investor” and “qualified purchaser” definitions to widen access.
The order also pushes agencies to reduce the threat of ERISA-related lawsuits, which have made plan sponsors cautious about offering anything outside the traditional mix of stocks, bonds, and cash.
Why It’s a Big Deal for Markets
America’s 401(k) system holds over $12 trillion. Even small allocations to alternative assets could mean huge capital flows:
- 3% allocation → $375 billion
- 5% allocation → $625 billion
- 10% allocation → $1.25 trillion
Private equity giants like Blackstone, Apollo, and BlackRock have been gearing up for years, building retirement-friendly versions of their funds. Crypto companies, including Coinbase, see this as a major validation and an on-ramp for mainstream adoption.
The Crypto Twist
This marks a full reversal from the Biden-era stance, which warned fiduciaries to “exercise extreme care” before offering crypto in 401(k)s. Under Trump’s policy, crypto is treated just like any other asset class—though most investors would get exposure through managed funds, not by buying coins directly in their 401(k).
The Roadblocks
Even with the green light from Washington, this change won’t happen overnight:
- Agencies still need to write and finalize new rules.
- Plan providers like Vanguard say investor education is critical before rolling out these options.
- Fiduciary liability remains a concern—if an alternative investment tanks, sponsors could face lawsuits.
- The first phase will likely come through self-directed brokerage windows, not as a default menu option.
Realistically, we might not see full integration until 2026 or later.
Supporters vs. Critics
Supporters say this democratizes investing, giving everyday people access to the same high-performing strategies used by large institutions.
Critics warn that many savers aren’t ready for the volatility, high fees, and complexity of alternatives—especially crypto, which can swing 10% in a single day. They’re pushing for caps (like 5–10% of a portfolio) and strong investor protections.
The Bottom Line
Trump’s executive order could be a game-changer for retirement investing—shifting from a world of just stocks and bonds to one that includes crypto, real estate, and private equity. But the success of this move will depend on careful rulemaking, cautious adoption by plan sponsors, and whether individual investors can navigate the risks that come with bigger opportunities.
The next 180 days will be key in deciding whether this bold idea becomes a practical reality—or just another political headline. My bet is on the former, and I think it’s just the beginning of a trend toward tokenization and blockchain.
As digital assets become more and more a part of the mainstream financial system, it’s increasingly important to have exposure to this space. That’s why I started Crypto Cycle – to give investors education and guidance on this nascent asset class as it matures.
As we head into the most explosive phase of this current crypto bull market, I’m urging investors who have been on the sidelines to gain exposure to digital assets before it’s too late.
Click here to get started.
Keep coming back,
Chris Curl
Editor, Daily Profit Cycle