Washington D.C. – The Trump administration is taking steps to broaden the scope of investment options available to Americans saving for retirement. A recent directive instructs regulators to explore changes that would facilitate greater access to alternative assets like cryptocurrencies, private equity, real estate, and gold within 401(k) plans.

The initiative aims to democratize investment opportunities traditionally reserved for high-net-worth individuals and institutions, while together unlocking new capital sources for firms operating in these sectors. The move seeks to give everyday workers access to a wider range of potential returns.

Currently, most U.S. employees rely on 401(k) plans – investment accounts where contributions are made from paychecks, often matched by employers – rather than customary pension plans offering guaranteed payouts. Government regulations have historically placed the onus on plan providers to carefully assess investment risks and associated expenses.

This has led to hesitancy among employers to include investments like private equity, which often carry higher fees, less stringent disclosure requirements, and reduced liquidity compared to publicly traded stocks. The new directive seeks to address these barriers.

The Department of labor has been given 180 days to review existing rules. While immediate changes are not anticipated, several major investment firms, including State Street and Vanguard, have already begun forging partnerships with alternative asset managers like Apollo Global and blackstone to develop private-equity focused retirement funds.

This move follows the Department of Labor’s rescission in May of 2022 guidance that cautioned firms to exercise “extreme care” when considering the addition of cryptocurrencies to retirement investment menus. During his first term, the Trump administration also issued guidance encouraging private equity investment within retirement plans, tho its impact was limited by legal concerns and was later revoked by the Biden administration.

Notably,President Trump has personal business interests connected to both cryptocurrency and investment accounts.