The White House will allow 401(k) investments in cryptocurrencies, and Blackstone CEO expects large private equity firms to dominate the market

The White House is preparing an executive order that will provide legal protection for 401(k) retirement plan managers, allowing them to include private market funds, cryptocurrencies and other alternative assets in their investment options.

Once the U.S. paves the way for 401(k) plans to expand into investments beyond stocks and bonds, the leading institutions in the alternative asset industry will be most likely to benefit, said Jon Gray, president of Blackstone Inc.

This move will bring major changes to the U.S. retirement savings market, provide ordinary investors with more diversified investment channels, and may also create new business growth points for large private equity management companies.