Source: The White House, translated by Jinse Finance
By the authority vested in me by the Constitution and laws of the United States, I hereby order:
Section 1: Purpose. Many wealthy Americans and government employees participating in public pension plans can invest in a variety of alternative assets or benefit from such investments. However, despite over 90 million Americans participating in employer-sponsored defined contribution plans, the vast majority of these investors have not had the opportunity to directly or indirectly participate in the potential growth and diversification opportunities offered by alternative asset investments.
Fiduciaries of 401(k) plans and other defined contribution retirement plans must carefully review and consider all aspects of private investment products, including the capabilities, experience, and effectiveness of investment managers in managing alternative asset investments. They do this to protect the retirement accounts of Americans under their management and to fulfill their fiduciary duty of prudent and safe investment.
During my first term, my administration issued a 2020 information letter acknowledging that prudent federal actions could encourage the promotion of investment strategies whereby a portion of the interests of retirement plan participants are allocated to alternative assets, just as is the case for institutional investors.
However, the burdensome lawsuits attempting to challenge the reasonable decisions of loyal and regulated fiduciaries, along with the stifling Department of Labor guidance issued since my first term, have deprived millions of Americans of the opportunity to benefit from investments in alternative assets. Such assets represent an increasing share of the investment portfolios of public pensions and fixed-income retirement plans, providing not only competitive returns but also opportunities for diversified investments.
The combination of excessive regulatory interference and lawsuits by opportunistic litigators has stifled investment innovation, resulting in participants of 401(k) plans and other defined contribution retirement plans being largely limited to asset classes that yield long-term net returns far below those obtainable by public pension funds and other institutional investors.
My administration will alleviate regulatory burdens and litigation risks that hinder American workers' retirement accounts from achieving competitive returns and asset diversification, which are essential for ensuring a dignified and comfortable retirement.
Section 2: Strategy. It is the policy of the United States that every American preparing for retirement should have the opportunity to access funds that include investments in alternative assets, provided that the relevant plan fiduciaries determine that such opportunities can provide appropriate chances for plan participants and beneficiaries to enhance their retirement assets' risk-adjusted net returns.
Section 3: Democratizing access to alternative assets. (a) For the purposes of this order, the term 'alternative assets' refers to:
(i) Private market investments, including direct and indirect interests in equity, debt, or other financial instruments not traded on public exchanges, including managers of such investments (as applicable) seeking to play an active role in the management of these companies;
(ii) Direct or indirect real estate interests, including debt instruments secured by direct or indirect real estate interests;
(iii) Actively managed investment instruments that hold investments in digital assets;
(iv) Direct and indirect commodity investments;
(v) Direct and indirect benefits from infrastructure financing projects; and
(vi) Lifetime income investment strategies, including longevity risk pooling funds.
(b) Within 180 days of the issuance of this order, the Secretary of Labor (hereinafter referred to as 'the Secretary') shall re-evaluate the Department of Labor's past and present guidance regarding fiduciary duties under the Employee Retirement Income Security Act of 1974 (as amended) (29 USC 1104) concerning the provision of asset allocation funds that include alternative asset investments to participants. In conducting this re-evaluation, the Secretary shall consider whether to rescind the Department of Labor's Statement on Private Equity issued on December 21, 2021.
(c) Within 180 days of the issuance of this order, the Secretary shall further seek to clarify the Department of Labor's position on alternative assets and the appropriate fiduciary processes related to the provision of asset allocation funds that include alternative asset investments under the Employee Retirement Income Security Act (ERISA), as deemed appropriate and consistent with applicable law. Such clarifications must aim to determine the standards fiduciaries should use to prudently balance the potential for higher expenses with the pursuit of higher long-term net returns and broader investment diversification. The Secretary shall also propose rules, regulations, or guidance, as deemed appropriate, to clarify the obligations of fiduciaries under ERISA to participants in deciding whether to provide asset allocation funds that include alternative asset investments. These rules, regulations, and guidance may include appropriately calibrated safe harbor provisions. In carrying out the directives of this section to further implement the policies set forth in this order, the Secretary shall prioritize actions to curb ERISA litigation that limits the ability of fiduciaries to provide investment opportunities to relevant plan participants using their best judgment.
(d) In carrying out the directives of this section, the Secretary shall consult, as appropriate, with the Secretary of the Treasury, the Securities and Exchange Commission (SEC), and other federal regulators to achieve the policy goals of this order, including parallel regulatory changes that other federal regulators may incorporate.
(e) The SEC shall consult with the Secretary to consider how to facilitate investments in alternative assets for participants in participant-directed defined contribution retirement savings plans (PDS). Such facilitation measures may include, but are not limited to, considering amendments to existing SEC regulations and guidance related to accredited investor (ADS) and qualified purchaser (QPI) eligibility to achieve the policy goals of this executive order.
Section 4: General provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) Powers granted by law to the executive department or agency or its head; or
(ii) Functions related to the Director of the Office of Management and Budget concerning budget, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order does not intend to, nor shall it, create any substantive or procedural rights or benefits enforceable by any party against the United States, its departments, agencies, or entities, their officers, employees, or agents, or any other person.
(d) The costs of issuing this order shall be borne by the Department of Labor.
Donald J. Trump
The White House,
August 7, 2025.