An executive order signed by President Trump could change workplace retirement plans by allowing investment in riskier assets like cryptocurrencies and private equity within 401(k) accounts. The Labor Department, Treasury, and Securities and Exchange Commission will explore necessary regulatory changes for this inclusion. Previously, the Biden administration had cautions against such investments due to their risks, particularly concerning cryptocurrencies. The DOL emphasized fiduciary duty, warning sponsors against exposing participants to high-risk assets and the potential for legal repercussions linked to investment losses.
The executive order signed by President Trump allows riskier assets, such as cryptocurrencies and private equity, to be included in 401(k) plans, pending regulatory changes.
Currently, regulators have expressed serious concerns over including cryptocurrencies in retirement plans, warning of significant risks like fraud and theft that could impact participants' funds.
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