A broader effort by President Trump to increase personal wealth and long-term financial security for working Americans is now extending into the nation’s retirement system, potentially allowing millions of workers to invest part of their 401(k) savings in assets such as cryptocurrencies, private equity and real estate.
The U.S. Department of Labor is accepting public comments on a proposed regulation tied to President Trump’s executive order, “Democratizing Access to Alternative Assets for 401(k) Investors.” The proposal would ease regulatory barriers and reduce legal liability concerns for employers and investment managers that choose to offer alternative investments through workplace retirement plans.
Administration officials say the proposal is part of a larger economic strategy aimed at helping Americans build wealth beyond traditional stock and bond investments. Trump has also promoted new “Trump Accounts” designed to encourage savings and investment for young Americans, while the “Big Beautiful Bill” includes provisions eliminating federal taxes on Social Security benefits, overtime pay, and tips for many workers.
Supporters say the combined policies are intended to allow Americans to keep more of what they earn while expanding opportunities to grow retirement savings over time.
“Our goal is to deliver on President Trump’s promise for a new golden age by fostering a retirement system that allows more Americans to retire with dignity,” Labor Secretary Lori Chavez-DeRemer said in announcing the proposal.
Under the proposed rule, retirement plan managers would still be required to evaluate investments based on performance, fees, liquidity and risk. Officials say the regulation creates a “safe harbor” process intended to shield fiduciaries from lawsuits if they follow proper review procedures before offering alternative assets.
Financial firms and cryptocurrency advocates praised the proposal as a modernization of the retirement system, arguing that broader diversification could improve long-term returns and give average workers access to investments historically reserved for hedge funds, wealthy individuals and large pension systems.
Critics, however, warn that volatile assets such as cryptocurrencies and private equity could expose retirees to greater financial risks, higher fees and reduced liquidity compared to traditional retirement investments. Some consumer advocates argue many workers may not fully understand the risks tied to speculative assets.
The proposal remains in the public comment period before any final rule is adopted.