Senators Elizabeth Warren and Bernie Sanders have issued a strong warning against President Donald Trump’s recent executive order, claiming it could jeopardize the retirement savings of millions of Americans. Signed in August, the order allows companies to include private equity, cryptocurrency, and other alternative assets in workers’ 401(k) plans. The lawmakers argue that these financial products are too unstable and poorly regulated to be part of retirement accounts meant to protect workers’ long-term savings.
In a letter dated October 28, Warren and Sanders, joined by five other Democratic senators — Ron Wyden, Dick Durbin, Jeffrey Merkley, Chris Murphy, and Tina Smith — urged Labor Secretary Lori Chavez-DeRemer and SEC Chairman Paul Atkins to reconsider the policy. They expressed deep concern that the executive order prioritizes corporate profit over retirement security. According to them, the new rule exposes ordinary Americans to speculative markets that could quickly wipe out years of careful savings.
The senators’ letter highlighted that the $13 trillion currently held in 401(k) plans would now become accessible to private equity firms and crypto asset managers eager for new sources of capital. They warned that this move hands Wall Street an enormous pool of money with minimal safeguards. Unlike traditional investments in stocks and bonds, alternative assets often lack transparency, making it difficult for ordinary investors to understand the risks they’re taking on.
Warren and Sanders criticized the administration for attempting to “rebrand” volatile and opaque assets as innovative “alternatives.” They said these investments carry exaggerated promises of high returns but frequently deliver massive losses when markets turn. Their main concern is that workers nearing retirement could see their savings vanish due to wild price fluctuations in crypto or risky private deals that aren’t subject to the same oversight as public markets.
Ultimately, the senators framed the issue as a dangerous experiment with Americans’ financial futures. With most U.S. workers now depending on 401(k) plans instead of pensions, they say this policy gamble could have devastating long-term effects. As government agencies remain slow to respond—partly due to the ongoing political gridlock—the lawmakers warn that millions of retirement accounts are being left exposed to a level of risk they were never designed to handle.
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