Trump Opens $12.5 Trillion in Retirement Savings to Cryptocurrency and Private Equity Risk

Trump signed an executive order directing the Labor Department to allow cryptocurrencies, private equity, and other alternative assets in 401(k) retirement plans, exposing the $12.5 trillion in retirement savings to high-risk, illiquid investments with elevated fees.

Context: The Department of Labor previously advised fiduciaries to ’exercise extreme care’ before adding cryptocurrency to retirement plans. That guidance was rescinded in May 2025. The order directs DOL to publish new guidance treating cryptocurrencies the same as traditional assets. Federal agencies need months to rewrite regulations enabling the changes.

Significance: Exposing trillions in retirement savings to volatile crypto markets and illiquid private equity shifts risk from Wall Street to ordinary workers. The order benefits crypto and private equity industries seeking access to retirement funds while endangering retirement security for millions. Regulatory protections built after financial crises are being dismantled to profit industries aligned with the administration.