President Trump is set to sign an executive order on Thursday to allow 401(k) investors to access cryptocurrencies, private equity, real estate and other digital and alternative assets.
The order directs the Securities and Exchange Commission (SEC) to revise regulations in order to facilitate access to alternative assets for participant-directed defined-contribution retirement savings plans, including 401(k)s.
Trump, through the order, would direct Labor Secretary Lori Chavez-DeRemer to reexamine the guidance on fiduciary duties regarding alternative asset investments and direct her to consult with Treasury Secretary Scott Bessent and the SEC to determine what regulatory changes can be made.
Trump is signing the order to give American workers more investment options, a White House official said, arguing that alternative assets like private equity, real estate, and digital assets offer competitive returns and diversification benefits.
An order that would encourage retirement funds to invest in private equity comes as that sector is hungry for capital after shrinking last year for the first time in decades. Through the order, Trump would be opening up retirement plans to riskier investments while giving private equity a much-needed capital infusion.
The customers of private equity firms are usually big institutional investors like defined-benefit pension plans, along with super wealthy people, while defined-contribution retirement plans usually invest in typically safer, publicly traded stocks and bonds.
The president has taken other steps to diversify financial options for Americans, including rolling back Biden-era rules on digital assets and dismissing cases and investigations on numerous crypto issues.
Trump promised on the campaign trail to make the U.S. the “crypto capital of the planet.” The White House last month laid out in a 166-page report recommendations for lawmakers and regulators on everything from crypto oversight to taxation to banking rules.
Tobias Burns and Julia Shapero contributed to this report.
