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• The Department of Labor has rescinded Biden-era guidance restricting digital assets.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.