Key Points
- The government wants to let 401(k) plans hold private credit and crypto.
- SEC Chair Paul Atkins says more choice helps investors earn higher returns.
- New rules are fast-tracking the launch of over 100 crypto ETFs by 2026.
- Advisors warn that “the little guy” may not understand complex investment risks.
The Trump administration and the SEC are working together to give regular Americans more ways to invest their money. They want everyday people to have access to assets that were previously reserved for the wealthy, such as private credit, private equity, and cryptocurrency. While this plan could help people earn higher returns, some financial experts worry it puts too much pressure on individuals to spot hidden dangers.
SEC Chair Paul Atkins and the White House strongly believe in “investor choice.” They argue that current retirement accounts, such as 401(k) plans, miss out on significant returns because they mostly stick to standard stocks and bonds. To fix this, the government is making it easier for investment funds to include private assets. They are also fast-tracking new crypto ETFs. In fact, some analysts expect more than 100 new crypto-related funds to enter the market in 2026.
However, not everyone thinks this is a good idea. Many financial advisors point out that private assets are very different from the stocks you see on the news. You cannot always sell them quickly when you need cash, and it is hard to know their exact value on any given day.
Mark Stancato, a wealth advisor in Georgia, is concerned that people will recognize the risks only after they lose their savings. He believes the average person might struggle to distinguish between a smart investment and a dangerous gamble.
The SEC insists that it still cares about protecting “the little guy.” The agency says it will ensure companies provide sufficient information so people can make informed decisions. At the same time, the Department of Labor is developing new rules to ensure these complex assets are handled appropriately within retirement plans.
For some, this move is a great chance to grow their wealth as the pros do. For others, it feels like a risky experiment for those without a team of experts. As 2026 approaches, the market is likely to see an influx of new, complex investment options.
