On August 7, U.S. President Donald Trump signed an order permitting alternative assets such as private equity, real estate, and cryptocurrencies in 401(k) retirement plans.
New Trump Order
According to Bloomberg, the new bill allows private equity, real estate, cryptocurrency, and other alternative assets into 401(k) retirement plans. This move marks a significant milestone for industries holding over $12.5 trillion in retirement accounts.
Benefits for Investors
401(k) plans are company-sponsored retirement accounts where employees can contribute a percentage of their paychecks. Following this order, the Labor Department will reassess guidelines for investing in alternative assets and review fund allocations and alternative holdings.
Interest in Cryptocurrencies
This step emphasizes Donald Trump's growing interest in cryptocurrencies. Throughout his 2024 campaign, he has actively supported the crypto industry. Last month, he hosted 'Crypto Week' at the White House to discuss several crypto-related bills.
Trump's signed order could significantly alter the landscape of retirement investments by providing access to new opportunities for a broader audience.
