Trump Signs Order Easing Path for Private Assets in 401(k)s
President Donald Trump has signed an executive order to expand access to alternative assets—including private equity, real estate, and cryptocurrency—within 401(k) retirement accounts, which hold around $12.5 trillion. The order directs the Labor Department to revisit existing regulations and clarify fiduciary responsibilities for including these assets in retirement plans governed by the Employee Retirement Income Security Act (ERISA).
The order also instructs collaboration with the Treasury, SEC, and other regulators to explore necessary rule changes, marking a significant move toward integrating private markets into defined-contribution plans. Supporters argue it offers more investment opportunities and growth potential, though critics warn of increased risk, complexity, and higher fees.
This move aligns with Trump’s broader push to boost the crypto industry, following his recent “Crypto Week”, new stablecoin regulation, and proposals for strategic reserves of digital assets. Trump’s policies aim to modernize finance, empower retail investors, and align 401(k) options with evolving market trends