Trump Administration Proposes Expanding 401(k) Investment Options to Include Crypto and Private Equity
Washington, D.C., March 31, 2026 — The Trump administration has unveiled a proposed rule aimed at allowing alternative assets such as private equity and cryptocurrencies to be included as investment options within 401(k) retirement plans. This initiative signifies a major potential shift in how millions of Americans may invest for their retirement futures.
The Department of Labor (DOL) released the proposal on Monday, following an executive order signed by President Donald Trump last summer that sought to expand investment choices for retirement accounts. The proposed regulation would open a 60-day public comment period before any final decisions are made.
Expanding Investment Choices in Retirement Plans
Current 401(k) plans predominantly include traditional asset classes like stocks, bonds, and mutual funds. The proposed rule would ease existing barriers that have historically limited access to alternative investments in defined contribution plans, potentially allowing workers to diversify their portfolios by allocating funds towards assets such as private equity, real estate, and cryptocurrencies.
Advocates of the change argue that incorporating alternative assets could enhance long-term returns and improve portfolio diversification, which is crucial for retirement savings. BlackRock’s Global Head of Retirement Solutions, Nick Nefouse, highlighted there is growing interest in more varied investment strategies within retirement plans.
However, skeptics caution that alternative assets often pose challenges including reduced liquidity, higher fees, greater complexity, and valuation difficulties. These factors may introduce additional risks that could impact returns negatively if not properly managed.
Fiduciary Responsibilities and Protections
The proposed rule emphasizes that plan fiduciaries must thoroughly and objectively assess the performance, fees, liquidity, valuation, complexity, and appropriate benchmarks of any alternative asset prior to inclusion in retirement plans. Importantly, fiduciaries who comply with these evaluation procedures would receive a “safe harbor” protection from potential lawsuits, offering legal reassurance.
Erin Cho, a partner at the Mayer Brown law firm, noted that while the rule could broaden investment options, it “will not open the floodgates for private equity, private credit or crypto funds to move into the retirement space” without due diligence and fiduciary prudence.
Context and Administration Response
The Trump administration’s rule contrasts with moves by the previous Biden administration, which in 2022 rescinded a compliance guidance release that had warned fiduciaries against adding cryptocurrency options to 401(k) plans. The Trump Labor Department criticized that action as a “departure from the department’s decades-long approach to fiduciary investment decisions.”
Labor Secretary Lori Chavez-DeRemer articulated that the proposed rule “will show how plans can consider products that better reflect the investment landscape as it exists today.” She added, “This greater diversity will drive innovation and result in a major win for American workers, retirees, and their families.”
Treasury Secretary Scott Bessent emphasized that the new regulation represents an “initial step in implementing the President’s Executive Order in a safe and smart manner,” aimed at expanding retirement plan options while safeguarding retirement savings.
Industry Outlook
Investment management firms such as Blackstone and Apollo Global Management stand to benefit from the influx of potential capital if the rule is finalized. Apollo CEO Marc Rowan described the proposal as a “thoughtful step toward addressing the growing retirement crisis,” noting that many Americans lack sufficient savings for retirement and that alternative assets could “meaningfully improve retirement outcomes.”
As the Labor Department opens the 60-day public comment period, stakeholders from various sectors—including investors, employers, and employee representatives—will have the opportunity to weigh in before the regulation is finalized.
For ongoing coverage of retirement policy and investment news, stay tuned to Fox Business.
Report by Eric Revell, FOXBusiness. Reuters contributed to this report.