US President wants Americans to invest retirement funds in crypto

US President Donald Trump is moving to make it easier for Americans to use their retirement savings to invest in non-traditional assets like cryptocurrencies, private equity, property, and gold.

On Thursday, he directed regulators to review rules that might discourage employers from offering such investment options in workplace retirement plans, known in the US as 401(k)s.

The move is intended to broaden access to investments once limited to the wealthy and institutional investors, while also unlocking new sources of capital for firms operating in those alternative asset sectors.

However, critics have raised concerns that the move could expose savers to higher risks.

In the US, most employers no longer offer traditional pensions with guaranteed payouts. Instead, employees typically contribute part of their salary to investment accounts, often matched in part by their employers. These accounts are governed by strict regulations requiring plan providers to consider factors like risk and cost when selecting investment options.

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Historically, many employers have avoided adding options like private equity to retirement plans due to their higher fees, reduced transparency, and lower liquidity compared to traditional stocks or bonds.