Fact Sheet: President Donald J. Trump Democratizes Access to Alternative Assets for 401(k) Investors

Expanding Investment Choices for 401(k) Plans:President Trump signed an Executive Order allowing 401(k) investors to access alternative assets for better returns and diversification.The Secretary of Labor is directed to reexamine and clarify guidance on alternative asset investments in ERISA-governed 401(k) and other defined-contribution plans.The Secretary of Labor will consult with the Treasury, SEC, and other regulators to consider parallel regulatory changes.The SEC is directed to facilitate access to alternative assets for participant-directed retirement savings plans.Promoting Retirement Security Through Diversified Investments:Over 90 million Americans participate in employer-sponsored defined-contribution plans, but most are currently restricted from investing in alternative assets, unlike wealthy investors and government workers.Alternative assets (private equity, real estate, digital assets) offer competitive returns and diversification.Regulatory overreach and litigation risks have limited plan fiduciaries from including alternative assets, hindering retirement growth.The new policy aims to expand access and ensure a more secure retirement for all Americans.Building Wealth and Securing Retirement for All Americans:The Department of Labor has rescinded Biden-era guidance restricting digital assets.The “One Big Beautiful Bill” aims to let retirees keep more of their benefits.President Trump has promised to make the U.S. the “crypto capital of the world,” emphasizing digital assets for economic growth and tech leadership.Tax cuts and deregulation are part of the administration’s plan to empower workers to save and invest more for retirement.