A group of U.S. lawmakers is urging the Securities and Exchange Commission (SEC) to implement President Trump’s executive order aimed at allowing cryptocurrencies and other alternative assets into 401(k) retirement plans. The order, signed in August, directs regulators to modernize rules that have traditionally restricted retirement savers from investing in alternative assets.
What the Executive Order Does
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Officially titled “Democratizing Access to Alternative Assets for 401(k) Investors,” the order instructs the Department of Labor (DOL) and the SEC to explore ways to include crypto, private equity, real estate, commodities, and infrastructure investments in employer-sponsored retirement plans.
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The DOL has been given 180 days to review existing guidance and clarify how fiduciaries can offer these investments while staying within legal and risk management standards.
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The order also calls for the creation of safe-harbor protections for plan sponsors and fiduciaries to encourage broader adoption.
Lawmakers Respond
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Supporters in Congress have praised the order, saying it modernizes the retirement system and gives American workers more flexibility in how they invest their savings.
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Critics, however, warn that exposing retirement funds to volatile assets such as cryptocurrencies could increase risks, reduce transparency, and complicate oversight.
Why This Matters
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The U.S. defined contribution retirement market—including 401(k) plans—manages an estimated $12.5 trillion in savings, much of it traditionally invested in stocks, bonds, and cash.
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If implemented, the new framework could open the door for millions of Americans to allocate a portion of their retirement funds to digital assets and other alternatives, potentially reshaping the retirement investment landscape.
