US Government Opens Retirement Accounts to Crypto and Alternative Assets

The US government has issued an executive order allowing retirement accounts to invest in cryptocurrency and alternative assets, a move aimed at tapping into the $12.5 trillion defined-contribution market. The order, signed by President Trump on April 30, directs the Labor Department to revise its guidance under ERISA (Employee Retirement Income Security Act) to permit plan fiduciaries to offer crypto and alternative assets as investment options.

Under existing regulations, retirement plans have been largely closed to digital assets due to concerns over volatility. However, proponents of this move argue that it will provide low-income Americans with greater financial opportunities. As part of the order, plan fiduciaries will need guidance on how to meet their duty of prudence when offering alternative assets.

The policy targets a significant market share, with approximately $12.5 trillion sitting in defined-contribution plans. The SEC must also assess enabling access for 401(k) investors, and agencies must coordinate before issuing new guidance.