Trump Administration Proposes Allowing Cryptocurrencies and Private Equity in 401(k) Plans
By Eric Revell, FOX Business | March 31, 2026
In a significant move that could reshape retirement investing, the Trump administration on Monday proposed a new rule aimed at enabling 401(k) plans to include alternative assets such as private equity and cryptocurrencies. The proposal, issued by the U.S. Department of Labor, seeks to lower long-standing barriers that have traditionally limited access to these asset classes within retirement accounts.
Expanding Investment Options in 401(k)s
Currently, 401(k) plans predominantly offer conventional investment options like stocks, bonds, and mutual funds. The proposed rule would allow plan sponsors and fiduciaries to incorporate alternative investments—such as private equity funds and cryptocurrencies—as part of their offering, provided they meet rigorous due diligence requirements.
Labor Secretary Lori Chavez-DeRemer emphasized the potential benefits, stating, “This rule will show how plans can consider products that better reflect the investment landscape as it exists today. This greater diversity will drive innovation and result in a major win for American workers, retirees, and their families.”
Treasury Secretary Scott Bessent also highlighted the broader vision behind the rule: “This is an initial step in implementing the President’s Executive Order in a safe and smart manner, broadening access to additional retirement plan options for millions of Americans while being mindful of the importance of protecting retirement assets.”
Background and Context
The proposed rule follows an executive order signed by President Donald Trump last summer aimed at expanding investment choices within retirement plans. Historically, managers of defined contribution plans have had the discretion to consider alternative investments but have largely refrained due to concerns over complexity, fees, liquidity, and valuation challenges.
The shift also comes in contrast to prior policies under the Biden administration. In 2022, the Labor Department issued a compliance bulletin cautioning fiduciaries against including cryptocurrency in retirement plans, a stance the Trump administration criticized as a “departure” from longstanding fiduciary investment principles.
Requirements and Protections for Fiduciaries
To address risks linked to alternative assets, the new rule outlines detailed standards for fiduciaries who choose to include such investments. They must conduct objective, thorough, and analytical reviews of performance history, fees, liquidity, valuation methods, benchmarks, and the complexity of the investment.
Importantly, fiduciaries who comply with this process would receive a “safe harbor” protection, shielding them from liability in lawsuits related to their decision to offer these alternatives. This safeguard aims to encourage caution combined with innovation in retirement plan offerings.
Industry Perspectives
Alternative asset managers and industry stakeholders have largely welcomed the proposal. Marc Rowan, CEO of Apollo Global Management, described the rule as a “thoughtful step toward addressing the growing retirement crisis," noting that many Americans currently lack sufficient savings and that expanded investment options could meaningfully improve retirement outcomes.
Similarly, BlackRock’s Global Head of Retirement Solutions, Nick Nefouse, commented on the potential for these changes to transform how millions invest for their retirement by introducing new avenues for growth and diversification.
Despite enthusiasm from some quarters, experts caution that the rule will not immediately usher in a flood of private equity or crypto funds into retirement plans. Erin Cho, a partner at Mayer Brown law firm, remarked that the proposal “will only provide a process for including these investments,” signaling that adoption will be measured and contingent on fiduciaries following the outlined diligence steps.
Next Steps
Following the proposal’s release, the Labor Department will open a 60-day public comment period, inviting feedback from the industry, advocacy groups, and the public. The agency will review these comments before deciding whether to finalize the rule.
If implemented, the change could mark a major evolution in retirement investing by blending traditional and alternative assets in 401(k) plans, potentially enhancing diversification and returns for American workers.
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Reuters contributed to this report.