In an overhaul of the existing 401 (k) retirement plan, U.S. President Donald Trump reportedly has plans to add alternative investments such as gold, private equity, and cryptocurrency as an option for the most widely used pension plan in the country.
As per a Financial Times report, the U.S. retirement market is valued at $9 trillion. Such a move would expand the range of investments that are usually classified under a typical 401 (k), such as stocks and bonds
Trump is expected to sign the executive order this week, and the investments will range from digital assets to metals and to funds focused on private transactions such as takeovers, loans, and infrastructure deals.
Such investments usually provide higher returns, but due to the lack of transparency surrounding such asset classes, they also involve a higher level of risk.
Support for crypto-friendly legislation is also ramping up in government, with the U.S. House of Representatives passing three bills—the GENIUS Act (308-122), the CLARITY Act (294-134), and the anti-CBDC Act (219-210).
The Trump family is heavily invested in cryptocurrency. Trump Media and Technology Group (TMTG) holds a huge chunk of the president’s investments in media and technology. The company also has a deal to raise an estimated $2.5 billion in funds, which will be used to purchase Bitcoin for its treasury strategy.