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Exploring 401(k) and Private Markets: New Possibilities Ahead
For investors who’ve long been limited to public stocks and bonds, this is a big step. And for Crowd Street, it’s a welcome one. We’ve spent more than a decade expanding access to private markets for individual investors.
But the announcement also raises questions: When will this access become available? How much of a 401(k) will be eligible for private investments? And how much control will investors actually have?
As the leading platform for self-directed private markets investing, we wanted to share our take on what this moment means and what to expect next.
When Will Private Markets Be Available in 401(k)s?
First, an important caveat: the details of how this policy will be implemented — and when — are still taking shape. But based on recent reporting and early rollout efforts from plan administrators like Empower [1], we can start to get a sense of where things are headed.
That uncertainty is part of the story. Even with a policy directive in motion, nothing will change overnight. Regulators still need to issue guidance, and plan administrators will need to decide whether to act on it. Industry leaders have already said broader adoption may require additional reforms, like litigation protection for fiduciaries or clearer standards for financial advice [2].
Still, none of that takes away from what this moment represents: growing recognition that individual investors may soon have broader access to private markets. That’s been Crowd Street’s purpose since day one — and it’s encouraging to see the federal government beginning to move in the same direction.
And for investors who are ready now, there’s no need to wait months or years. Crowd Street already gives individuals self-directed access to private markets, through a transparent process that’s been applied across thousands of investments. You can join the 300,000 investors already ahead of the curve.
That brings us to another question we hear a lot: will these new 401(k) offerings look anything like what Crowd Street offers today?
Will New 401(k) Options Offer the Same Control as Crowd Street?
In short: probably not.
While the exact structure of these 401(k) products is still taking shape, early signals point to passive, pre-packaged exposure. Based on what firms like Empower are piloting, most investors won’t be selecting individual funds or evaluating strategies. Instead, a financial advisor or algorithm will allocate a small portion of their retirement portfolio into a blended “alternatives” sleeve. And that’s only if your employer chooses to offer it [3].
That’s still a big improvement from today’s 401(k) options. And for many investors, it may be a step in the right direction: more diversification, more opportunity.
But that model is fundamentally different from what Crowd Street offers.
We don’t just give access to private markets; we give investors control. Crowd Street is built for people who want to be active participants in how they invest. Our members review sponsors’ strategies, choose their own deals or funds, and decide how to allocate their own capital.
Don’t Wait for Washington
Progress is progress. And as public markets continue to shrink, it’s more important than ever that individual investors have access to the assets institutions have relied on for decades [4]. But for now, the slow rollout of private markets in 401(k)s feels like a first step, not a sea change.
As regulators work through the challenges ahead, we’ll keep doing what we’ve done for years: building a trusted, transparent platform that delivers private market offerings directly to accredited investors.
