Washington: The order, announced Thursday, clears the way for fund managers to channel Americans’ retirement savings into alternative assets beyond traditional stocks, bonds, and cash. Supporters say it could offer new opportunities for higher returns, while critics warn it could expose retirees to volatile, speculative markets, particularly in cryptocurrency.

Trump framed the move as part of his broader effort to roll back what he calls “regulatory overreach” and make the U.S. the “crypto capital of the world.” Once a crypto skeptic, Trump has since launched his own digital asset ventures and courted industry support.

Under the directive, the Labor Secretary will work with the Treasury Department, Securities and Exchange Commission, and other regulators to align rules for alternative assets in retirement accounts. The new investment options generally carry higher fees, lower liquidity, and, in the case of crypto, sharp price swings and exposure to fraud.

Anil Khurana of Georgetown University’s Baratta Center for Global Business cautioned that while diversifying 401(k) options is “reasonable,” adding highly speculative, underregulated sectors “could be a big mistake.”

The move comes alongside a separate Trump order targeting the alleged “debanking” of conservatives, a grievance pushed by some Silicon Valley investors as part of a broader push to ease oversight of crypto assets.