Trump Opens Up 401(k) Plans to Crypto

President Trump has made a notable move regarding how people might save for retirement. Trump signed an executive order designed to make it easier for Americans to invest their 401(k) retirement savings in alternative assets such as cryptocurrencies, private equity, and real estate, reports the Guardian. The move opens up the $12 trillion retirement market to asset classes beyond traditional stocks and bonds.

• The New York Times notes that current rules do not explicitly prohibit such investments, but the Labor Department—which oversees retirement plans—warns against them. The order from Trump, whose administration and family business have embraced the crypto industry—directs the department to reevaluate its guidelines and rules. It's a "significant shift" from the Biden administration, the story notes.
• Supporters say the move could offer savers a wider range of investment opportunities and potentially higher returns, especially for younger workers willing to take on more risk.
• Critics, however, warn that bringing more speculative assets like crypto into retirement accounts could jeopardize long-term financial security. Cryptocurrencies, in particular, are notorious for their volatility and exposure to fraud.