Trump seeks to allow 401(k) investments in private equity and crypto amid legal challenges

Key Takeaways

• President Trump proposes allowing 401(k) retirement accounts to invest in alternative assets like private equity and cryptocurrencies.
• Current regulations limit 401(k) investments mainly to stocks and bonds; the proposal would expand these options.

President Trump wants to enable 401(k) investments in alternative assets including private equity and crypto, but legal challenges pose obstacles to the initiative.

The plan would clear regulatory pathways for retirement account holders to allocate funds into these non-traditional investment vehicles, expanding beyond the typical stock and bond options currently available in most employer-sponsored retirement plans.

Legal risks from potential lawsuits represent the primary barrier to implementing the proposed changes to 401(k) investment rules.