The Trump administration is pushing for American retirement savers to gain access to "alternative" investments, including private equity and cryptocurrency. That push is feeding debate on whether those potentially risky assets belong in retirement accounts.
On March 31, the Labor Department issued a proposed rule that would ease legal and regulatory barriers against adding alternative investments to retirement plans. The rule follows an executive order from President Donald Trump in 2025.
The introduction of private equity into 401(k) accounts is a controversial initiative of the Trump administration. Firms that invest in private assets have been lobbying for access to lucrative workplace retirement plans. Critics warn that private assets are risky, complex and opaque. Recently, concerns have mounted about the fundamental health of the private credit industry.
"Anyone who cares about the financial security of working people should oppose this proposed rule," said Sen. Elizabeth Warren, D-Massachusetts, in a March 30 statement.
Others applauded the administration’s efforts.
