Trump’s directive permits 401(k) plans to include alternative investments such as cryptocurrencies and private equity.

U.S. President Donald Trump waves from the roof of the West Wing of the White House as he takes a tour on August 05, 2025 in Washington, DC. Win Mcnamee | Getty Images News | Getty Images

President Donald Trump will sign an executive order on Thursday to allow alternative assets such as private equity, cryptocurrencies, and real estate into 401(k)s, according to a senior White House official.

The executive order will direct the U.S. Secretary of Labor to review fiduciary guidance on private market investments in 401(k) and other defined contribution plans governed by the Employee Retirement Income Security Act of 1974 (ERISA). This federal law sets minimum standards for most retirement plans.

Trump has an executive order signing scheduled at noon. This development was first reported by a prominent news outlet.

An executive order would mark a significant victory for the alternative asset industry, which has been advocating for greater adoption of private assets in defined contribution plans during Trump’s second term. However, it also introduces new risks for investors.

Bitcoin surged on Thursday in response to the news, while private equity stocks such as Apollo Group saw slight increases during early trading.

Private market assets have traditionally been excluded from 401(k)s, despite their acceptance by pension funds and university endowments, due to high fees, lack of transparency, and longer lockup periods that make them riskier investments.

However, private market exposure in 401(k) plans was considered permissible in 2020 when the Department of Labor under the previous Trump administration issued guidance indicating it could be appropriate for defined contribution plans under specific conditions. This guidance was later affirmed by the agency directed by the Biden administration.

The presence of these assets has already grown. Asset managers and plan sponsors have developed products for retirement vehicles where Americans collectively hold approximately $8.7 trillion in assets, according to data on 401(k)s at the end of the first quarter of 2025 from the Investment Company Institute.

In June, BlackRock, the world’s largest asset manager, announced plans to launch a 401(k) target-date fund in the first half of 2026 that will include a 5% to 20% allocation to private investments. In May, Empower, the country’s second-largest retirement plan provider, stated it would begin allowing private assets in some accounts later this year.

— With reporting by CNBC’s Megan Cassella.