The United States plans to allow 401(k) retirement plans to include private equity and cryptocurrency

According to Reuters, the U.S. Department of Labor has proposed allowing 401(k) retirement plans to include alternative assets such as private equity and cryptocurrencies, aiming to break long-standing investment barriers.

The proposal requires trustees to conduct strict reviews of factors such as asset performance, fees, and liquidity, with compliant parties receiving legal protection. Private equity giants like Blackstone, KKR, and Apollo are expected to tap into new sources of capital as a result, with related stock prices rising following the announcement. Treasury Secretary Yellen stated that this move is a preliminary measure to "protect retirement assets." The proposal will open a 60-day public comment period. Critics, such as Senator Warren, have warned that this move could expose retirement savings to high-risk assets.