President Donald Trump signed an executive order to allow 401(k) investors to access alternative assets, including cryptocurrency, private equity, and real estate.
“Many wealthy Americans, and Government workers who participate in public pension plans, can invest in, or are the beneficiaries of investment in, a number of alternative assets,” Trump’s order says. “Yet, while more than 90 million Americans participate in employer-sponsored defined-contribution plans, the vast majority of these investors do not have the opportunity to participate, either directly or through their retirement plans, in the potential growth and diversification opportunities associated with alternative asset investments.”
“My Administration will relieve the regulatory burdens and litigation risk that impede American workers’ retirement accounts from achieving the competitive returns and asset diversification necessary to secure a dignified, comfortable retirement,” the order adds, going on to direct the Labor Secretary to revisit guidance under the Employee Retirement Income Security Act of 1974 and “clarify the Department of Labor’s position on alternative assets and the appropriate fiduciary process associated with offering asset allocation funds containing investments in alternative assets under ERISA.”
According to a White House fact sheet on the order, alternative assets, such as “private equity, real estate, and digital assets, offer competitive returns and diversification benefits.”
Earlier this year, President Trump announced the creation of a U.S. Crypto Strategic Reserve, incorporating cryptocurrencies such as Bitcoin, Ethereum, XRP (Ripple), Solana (SOL), and Cardano (ADA), an effort which aimed to position the United States as a global leader in the digital asset space. The move aligned with the president’s January 23 executive order, “Strengthening American Leadership in Digital Financial Technology.”
