US President Donald Trump will sign a new executive order today that will pave the way for investments in private equity, real estate, cryptocurrency and other alternative assets in 401(k) retirement plans. Trump's Executive Order to Ease Private Asset Access for Retirement Funds: Crypto, REITs, and Venture Capital Enter 401(k)s This step is a significant victory for sectors seeking access to approximately $12.5 trillion in pension funds. The executive order would instruct the Department of Labor (DoL) to reevaluate existing guidance regarding alternative asset investments in retirement plans under the Employee Retirement Income Security Act of 1974 (ERISA). It will also be necessary to clarify the government's position on the fiduciary duty of pension managers offering alternative asset funds. Trump will also instruct Labor Secretary Lori Chavez-DeRemer to coordinate with the Treasury Department, the Securities and Exchange Commission (SEC), and other regulatory agencies. The SEC is expected to be tasked with facilitating access to alternative assets in individually managed retirement plans. This move, long debated in Washington, aims to ease legal hurdles to incorporating alternative assets into retirement portfolios. Until now, many companies have focused more on stocks and bonds in plans like 401(k)s because they were seen as illiquid and complex. This initiative is seen as the Trump administration's biggest move yet to integrate private assets into defined contribution plans. A similar move was made during Trump's first term, when the Labor Department declared private equity investments acceptable. However, this approach was withdrawn under former President Joe Biden. *This is not investment advice. Continue Reading: US President Donald Trump Signs Executive Order That Will Affect the Cryptocurrency Market! Details Here
