President Donald Trump is preparing to sign a new executive order that could significantly reshape retirement investing in the U.S.
The directive would push to allow alternative assets, including private equity, real estate, and cryptocurrencies, to be included in 401(k) retirement accounts, signaling a strategic policy win for industries seeking access to the $12.5 trillion defined-contribution market.
Quoting sources, Bloomberg reported that the executive order will instruct the Department of Labor to revisit existing rules that govern retirement accounts under the Employee Retirement Income Security Act (ERISA).
Specifically, the department will assess how alternative assets can be responsibly incorporated into asset allocation funds, while also reviewing the fiduciary implications for plan administrators.
The order is expected to direct Labor Secretary Lori Chavez-DeRemer to coordinate with the Treasury Department, the SEC, and other financial regulators to explore potential rule changes.
The SEC will be tasked with improving access to private assets for those participating in self-directed retirement plans.
This move marks the Trump administration’s most aggressive step yet to expand access to private markets through retirement portfolios.
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A similar policy had been introduced during Trump’s first term, allowing for private equity in retirement plans, but was rolled back under the Biden administration.
Asset managers, both traditional and alternative, see this as a new opportunity to tap into defined-contribution plans, especially as institutional investors like pensions and endowments face allocation limits in private equity due to slow exits and fewer deals.
Advocates say opening 401(k)s to non-traditional investments offers workers more options and potentially higher returns.
However, critics warn of increased risk, less liquidity, and higher fees, all of which could expose employers to legal challenges.
The backdrop to this policy change also includes Trump’s increasing embrace of cryptocurrency.
In recent months, he’s signed the first federal legislation to regulate stablecoins, appointed David Sacks as the White House’s inaugural crypto and AI czar, and launched initiatives like a Strategic Bitcoin Reserve.
He has also eased regulatory pressure on major crypto firms by pausing investigations and enforcement actions.
Trump’s personal involvement in crypto ventures has added over $600 million to his net worth, according to Bloomberg estimates, with projects ranging from digital collectibles to tokenized ecosystems.
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