The Trump administration is proposing a significant shift in how Americans invest their retirement savings, opening the door for 401(k) plans to include alternative assets such as cryptocurrencies and private equity, The Washington Post writes.
The Labor Department’s draft rule would expand investment options across roughly 721,000 retirement plans, covering about 118 million workers and $8.8 trillion in assets, positioning the move as a way to modernize portfolios and potentially boost long-term returns.
Supporters, including major Wall Street firms, say the change would broaden access to investments traditionally reserved for institutional players. But critics warn the proposal could expose everyday savers to higher fees, limited liquidity and increased risk, particularly as parts of the private markets face signs of stress.
The rule also aims to reduce legal uncertainty for plan managers, which could encourage wider adoption over time. The proposal is now open for public comment and is expected to face significant scrutiny before any final decision is made.
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