Private Equity Giants, Led by Blackstone, Eye 401(k) Market as Crypto, Alternatives Gain Traction

The U.S. retirement savings system is on the cusp of a major transformation. Private equity giants, led by Blackstone Inc. (NYSE: BX), are preparing to integrate alternative assets—including cryptocurrencies—into 401(k) retirement plans. Jon Gray, President of Blackstone, emphasized that large firms with scale and regulatory expertise are best positioned to lead this shift.

The catalyst is a forthcoming executive order from the White House, expected to provide legal clarity for plan managers to allocate retirement funds into private equity, crypto, and other non-traditional assets. This move aligns with former President Donald Trump’s broader push to expand retail access to private capital markets.

The alternative asset industry’s biggest players will likely come out on top once the US paves the way for Americans’ 401(k)s to go beyond stocks and bonds, Blackstone Inc. President Jon Gray said.

The executive order seeks to dismantle long-standing regulatory barriers that have restricted 401(k) plans to traditional stocks and bonds, enabling savers to pursue higher-yielding, though riskier, asset classes.

Industry Alliances and Crypto Advocates Lead the Charge

In anticipation of regulatory changes, major firms such as KKR & Co. (NYSE: KKR), Blue Owl Capital (NYSE: OWL), and Blackstone have formed strategic partnerships with 401(k) administrators to integrate private credit and equity offerings into retirement platforms. Simultaneously, Washington lobbying efforts have intensified, pushing for clear tax guidance and rulemaking to facilitate this transition.

The inclusion of cryptocurrencies has emerged as a focal point. President Trump is reportedly planning to sign an executive order permitting crypto, gold, and private equity within retirement accounts—potentially unlocking up to $9 trillion in capital.

Legislators are also advancing related initiatives. Senator Tommy Tuberville (R-Ala.) and Representative Byron Donalds (R-Fla.) reintroduced the Financial Freedom Act in April 2025, aiming to block the Department of Labor from limiting crypto investments in self-directed 401(k) brokerage windows.

“The Financial Freedom Act would preserve the ability of retirement savers to invest their 401(k) funds as they see fit — including investments in cryptocurrency,” Senator Tommy Tuberville stated in a press release introducing the bill.

Companies like Fidelity and ForUsAll are already offering crypto exposure in 401(k) plans, with ForUsAll capping allocations at 5%. Industry groups such as the Blockchain Association and Chamber of Digital Commerce have endorsed these legislative efforts. Meanwhile, former SEC commissioner Paul Atkins—reportedly being considered for SEC Chair—has called for clearer digital asset regulation, stating that crypto markets have been “languishing in SEC limbo for years.”

Balancing Innovation with Transparency and Risk

Despite the enthusiasm, the growing momentum to integrate private equity and crypto into 401(k)s raises significant concerns about transparency, investor sophistication, and asset liquidity.

Private investment platforms like Forge Global are lowering minimum investment thresholds to open private markets to retail savers. However, the limited disclosures and complexity of private markets remain challenging.

Critics warn that retail investors may be unprepared for such volatility and illiquidity. Still, private equity and crypto proponents argue that offering greater choice, even in riskier assets, is essential to modernizing U.S. retirement systems.

As institutional players push forward, the 401(k) market may soon reflect a more diversified, decentralized future—where blockchain, private equity, and traditional finance converge.