Trump Rule Would Allow Private Equity, Crypto in 401(k) Plans

Critics warn the proposal could endanger retirement savings of millions

Mar. 31, 2026 at 6:28pm

Got story updates? Submit your updates here. ›

An extreme close-up of a complex, metallic financial mechanism or banking machinery, dramatically lit against a dark background, conceptually representing the risks of allowing alternative investments into 401(k) plans.The proposed rule change would open the door for private equity and crypto firms to gain access to the trillions of dollars held in Americans' 401(k) retirement accounts.Washington Today

The Trump administration's Labor Department has unveiled a proposal that would allow private equity and cryptocurrency investments into Americans' 401(k) plans, a move that critics say could put the retirement savings of millions at risk.

Why it matters

The proposed rule would create a 'safe harbor' that shields retirement account administrators from legal action, incentivizing them to pitch risky alternative assets to workers. This could turn 401(k) plans into 'ticking time bombs' and leave savers vulnerable to the volatility of private equity and crypto.

The details

The rule was issued at the direction of a Trump executive order last year that was seen as a 'holy grail' for the private equity industry, which has long sought access to the over $10 trillion held in 401(k) plans. In addition to giving employers the green light to include private equity and crypto in retirement plans, the proposal would protect financial advisers from liability if they steer workers into these products.

  • The Labor Department unveiled the proposed rule on March 31, 2026.
  • The rule is now subject to a public comment period.

The players

Trump Administration

The current US presidential administration, which issued an executive order last year that paved the way for this proposed rule change.

US Department of Labor

The federal agency that unveiled the proposed rule to allow private equity and cryptocurrency investments in 401(k) plans.

Private Equity Industry

The industry that has been lobbying for years to gain access to the over $10 trillion held in Americans' 401(k) retirement accounts.

Better Markets

An advocacy group that warned the proposed 'safe harbor' would 'incentivize financial advisers to pitch these toxic products' to retirement savers.

Americans for Financial Reform

A policy group that said the rule change is 'about opening a new profit center for crypto and Wall Street,' not advancing the interests of retirement savers.

Got photos? Submit your photos here. ›

What they’re saying

“The legal immunity created by this safe harbor will incentivize financial advisers to pitch these toxic products, which will become ticking time bombs in tens of millions of retirement accounts, which will no doubt result in significant losses.”

— Benjamin Schiffrin, Director of securities policy, Better Markets

“This isn't about advancing the interests of retirement savers, it is about opening a new profit center for crypto and Wall Street.”

— Oscar Valdés Viera, Senior policy analyst, Americans for Financial Reform

“Private equity firms should not get a free pass to loot workers' 401(k) retirement savings.”

— Jim Baker, Executive director, Private Equity Stakeholder Project

What’s next

The proposed rule is now open for public comment before the Labor Department finalizes it.

The takeaway

This rule change represents a significant shift that could expose millions of Americans' retirement savings to the risks of private equity and cryptocurrency investments, despite concerns that these alternative assets could underperform and charge higher fees than traditional investments.