Trump Administration Proposes Rule to Expand Alternative Investments in 401(k) Plans

The Department of Labor aims to democratize access to crypto, real estate, and private assets for retirement savers.

Apr. 1, 2026 at 4:36pm

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The Trump administration has proposed a new Department of Labor rule that would allow 401(k) retirement plans to more easily include alternative assets such as cryptocurrency, real estate, and private market investments. The goal is to provide greater diversification and potentially higher returns for retirement savers, though some financial advisors have concerns about 401(k) investors' expertise in these complex assets.

Why it matters

This proposed rule is part of the Trump administration's broader effort to expand investment options for Americans saving for retirement through 401(k) plans. Proponents argue it will help level the playing field by giving 401(k) participants access to the same diversification opportunities available to pension fund investors, while critics worry about the risks of inexperienced investors accessing complex alternative assets.

The details

The Department of Labor (DOL) issued the proposed rule to include more alternative investment options in 401(k) plans, following an executive order signed by President Trump last August directing the DOL and SEC to offer expanded assets. The rule would create a safe-harbor provision to protect retirement plan providers from potential lawsuits over offering these alternative investments. Currently, 401(k) plans are not barred from offering alternatives, but many fear legal challenges to their investment decisions.

  • In August 2025, President Trump signed an executive order directing the DOL and SEC to expand investment options in 401(k) plans.
  • On April 1, 2026, the DOL issued the proposed rule to implement the president's executive order.

The players

Lori Chavez-DeRemere

The Secretary of the Department of Labor who issued the proposed rule to expand alternative investment options in 401(k) plans.

Scott Bessent

The Treasury Secretary who praised the DOL's partnership and looked forward to continued engagement on the rulemaking process.

David Pasch

The Executive Director of the Council for a Safe and Secure Retirement, an advocacy group that applauded the DOL's proposed rule.

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What they’re saying

“This proposed rule will show how plans can consider products that better reflect the investment landscape as it exists today.”

— Lori Chavez-DeRemere, Secretary of the Department of Labor

“This proposed rule is an initial step in implementing the President's Executive Order in a safe and smart manner, broadening access to additional retirement plan options for millions of Americans while being mindful of the importance of protecting retirement assets.”

— Scott Bessent, Treasury Secretary

“We applaud the DOL for advancing President Trump's Executive Order to expand retirement investment options for American workers. This proposed rule is a critical step to ending the two-tiered system that has prevented 401(k) savers from accessing the same diversification and investment opportunities available to pension fund participants.”

— David Pasch, Executive Director, Council for a Safe and Secure Retirement

What’s next

The DOL's proposed rule will now go through a public comment period before being finalized.

The takeaway

This rule change aims to give 401(k) investors greater access to alternative assets like crypto and real estate, providing more diversification options. However, concerns remain about the risks of inexperienced retirement savers investing in complex products.