President Donald Trump signed Executive Order 14123, titled “Democratizing Access to Alternative Assets for 401(k) Investors,” directing federal agencies, including the Securities and Exchange Commission (SEC) and the Department of Labor, to revise regulations and guidance.
This aims to enable participant-directed defined-contribution retirement plans, such as 401(k)s, to include alternative assets like cryptocurrencies, private equity, and real estate. The order addresses restrictions under the Employee Retirement Income Security Act (ERISA) of 1974, which has limited such investments to protect savers, but proponents argue it democratizes access to higher-return opportunities typically available to wealthy or institutional investors.
As of September 23, 2025, the SEC faces mounting pressure to act swiftly. Labor Secretary Lori Chavez-DeRemer praised the order for promoting flexibility and eliminating “one-size-fits-all” approaches, signaling inter-agency coordination.
However, implementation isn’t immediate—fiduciaries must still ensure investments are “prudent” under ERISA, meaning employers and plan administrators will need to vet options carefully to avoid liability.
Critics, including Sen. Elizabeth Warren and economists like Gerald Epstein, warn of heightened risks: cryptocurrencies’ volatility, private equity’s high fees often 2% management plus 20% performance, and lack of transparency could jeopardize the $12 trillion in U.S. retirement savings.
Proponents, including firms like BlackRock and Vanguard, highlight potential diversification benefits for long-term investors with high risk tolerance. The SEC has not yet issued final rules, but industry groups are lobbying for expedited guidance, potentially by year-end.
US-UK Partnership Forms Crypto Task Force
The U.S. and UK announced the Transatlantic Taskforce for Markets of the Future, a joint initiative co-chaired by UK Chancellor Rachel Reeves and U.S. Treasury Secretary Scott Bessent.
This task force, operating through the existing UK-US Financial Regulatory Working Group, will deliver policy recommendations within 180 days on cryptocurrency regulation, digital asset oversight, and cross-border collaboration.
Focus areas include stablecoin alignment, tokenization of traditional assets, wholesale digital markets innovation, and anti-money laundering (AML) standards for crypto firms. The partnership stems from Trump’s recent UK state visit and reflects a shared push to position both nations as global crypto leaders amid renewed U.S. enthusiasm.
Coinbase, a key participant in the discussions, endorsed the effort, advocating for a “stablecoin corridor” and mutual recognition of regulatory regimes to boost innovation without stifling growth. UK trade groups like the Cryptoasset Business Council hailed it as a “vote of confidence,” noting the UK’s lag in adoption compared to the U.S.
This move could harmonize rules—e.g., UK’s planned 2026 crypto licensing with U.S. stablecoin frameworks—reducing barriers for firms like Coinbase operating transatlantic. However, challenges remain: balancing innovation with consumer protection, especially post-FTX scandals.
The task force seeks industry input, potentially accelerating global standards. These developments signal accelerating mainstream integration of crypto into finance, but with ongoing debates over risks versus rewards.
Over 90 million Americans with 401(k) plans could access cryptocurrencies, private equity, and real estate, potentially diversifying portfolios beyond traditional stocks and bonds. Alternative assets like Bitcoin have historically seen high returns (e.g., 60% annualized returns in some periods), appealing to younger, risk-tolerant investors.
SEC and Department of Labor guidance could clarify rules, encouraging employers to offer crypto options without fear of liability. This aligns with Trump’s deregulatory push, potentially streamlining approvals by late 2025.
Opening 401(k)s to crypto could drive billions into digital assets, boosting market liquidity and mainstream adoption. Firms like BlackRock and Coinbase could benefit from new investment products (e.g., Bitcoin ETFs).
Mass adoption could amplify market volatility, especially if retail investors panic-sell during downturns. Economic inequality may widen if high-risk assets disproportionately benefit wealthier, sophisticated investors.
Implications of US-UK Crypto Task Force
Harmonized rules (e.g., stablecoin frameworks, AML standards) could create a seamless transatlantic crypto market, reducing compliance costs for firms like Coinbase. A “stablecoin corridor” might enhance cross-border transactions, boosting efficiency.
Misaligned priorities (e.g., UK’s stricter licensing vs. U.S.’s lighter-touch approach) could delay consensus, prolonging uncertainty for businesses. Joint policy recommendations by March 2026 could position the US and UK as global crypto hubs, attracting investment and talent.
Tokenization of assets (e.g., real estate, bonds) could revolutionize financial markets, per Coinbase’s advocacy. Overregulation or slow implementation could push innovation to less-regulated jurisdictions like Singapore or Dubai, as warned by industry groups.
Robust AML and fraud protections could rebuild trust post-FTX, encouraging broader adoption. Clear rules might stabilize markets by reducing speculative excesses. Balancing innovation with protection is tricky—overly stringent rules could stifle growth, while lax ones risk consumer losses, especially for retail investors.
A US-UK crypto alliance could set global standards, countering influence from China’s digital yuan or other centralized systems. This aligns with Trump’s pro-crypto agenda to maintain U.S. financial dominance.
Both developments reflect a pro-crypto shift in Western policy, driven by Trump’s agenda and UK’s need to compete post-Brexit. They could accelerate mainstream crypto adoption but face hurdles in balancing innovation, risk, and consumer protection.
