Trump opens door for 401(k) plans to invest in crypto
16 days ago
- #retirement
- #private-equity
- #cryptocurrency
- President Donald Trump signed an executive order allowing 401(k) retirement plans to invest in private equity and cryptocurrencies.
- The order requires federal agencies to rewrite rules, a process that will take months, before employers can offer these new investment options.
- Private equity and cryptocurrency industries, which supported Trump's campaign, stand to benefit from access to trillions in retirement funds.
- Cryptocurrencies are volatile, with prices like bitcoin seeing significant swings, but they are popular among younger investors.
- Private equity investments, while historically yielding higher returns than the S&P 500, are less liquid and riskier.
- Major retirement plan providers will need time to develop new funds, meaning these options may not be immediately available to savers.