The White House Press Office confirmed on Thursday that an executive order, likely to be signed by President Donald Trump, will direct the U.S. Labor Department to ease restrictions on alternative assets in 401(k) retirement plans. These assets could include digital assets like cryptocurrencies, private equity, and real estate.

A senior White House official stated the order will instruct the Secretary of Labor to clarify the department’s stance on alternative assets and provide guidance on fiduciary processes for offering these investments to plan sponsors.

The $12.5 Trillion Opportunity

Industry analysts highlight that allowing digital assets into 401(k)s could open up access for American workers in the world’s second-largest retirement market, valued at over $12.5 trillion. This presents a significant expansionary opportunity for cryptocurrency firms aiming to reach broader retail investors. The move is viewed as a major victory for crypto legitimacy within the financial infrastructure.

Despite increasing institutional investment in crypto, consumer savers have largely been excluded due to concerns over fiduciary risk, regulatory ambiguity, and asset price volatility. White House advisors are also aiming to initiate inter-agency coordination with Treasury and the SEC to potentially streamline rules supporting alternative asset adoption.

SEC Chair Gary Gensler, while supportive of the initiative’s educational potential, emphasized risk disclosure, stating “education on the risks associated with crypto… is crucial” and highlighting the need for full transparency.

Previous Policy Shift

Last May, the Labor Department had reversed its earlier cautionary guidance on cryptocurrency, which had advised fiduciaries to be “extremely cautious.” This latest presidential directive marks the sharpest policy shift to date.