President Trump's executive order could allow millions of Americans to invest their 401(k) retirement savings in higher-risk assets like private equity and cryptocurrency. While no immediate changes are expected, federal agencies will revise regulations to permit broader investment choices. This move benefits the private equity and cryptocurrency industries, who lobbied for access to the trillions of dollars in retirement funds. The order directs the Labor Department to redefine qualified assets under ERISA. Although offering potentially higher returns, these alternative investments also carry significantly greater risk and liquidity challenges.

Prepared by Christopher Adams and reviewed by editorial team.