President Donald J. Trump signed a widely anticipated executive order on August 7, 2025, aimed at making it easier for 401(k) retirement plans to include private market investments, such as equity, debt, infrastructure, and cryptocurrencies. This landmark decision seeks to broaden Americans’ access to alternative assets historically limited to wealthy investors and public pension funds.
The new directive instructs the Secretary of Labor, in consultation with the Treasury Department and the Securities and Exchange Commission, to examine the current regulatory guidance under the Employee Retirement Income Security Act (ERISA). The goal is to facilitate the inclusion of private market and digital assets in retirement plan portfolios, providing participants with greater investment flexibility while maintaining strict fiduciary standards.
“The American Retirement Association supports 401(k) participant access to private market investments as part of a professionally managed portfolio,” said Brian Graff, CEO of the association. He emphasized that fiduciaries subject to rigorous standards are best suited to assess market developments and make decisions that serve the financial interests of retirement plan participants and beneficiaries.
The executive order criticizes previous regulatory overreach and legal actions that have hindered innovation in retirement investing. It highlights how these obstacles have confined many 401(k) participants to traditional asset classes that may not deliver the long-term net benefits enjoyed by institutional investors such as public pension plans.
Specifically, the order mandates that within 180 days, the Labor Secretary must review past and current guidance related to fiduciary duties under ERISA, particularly concerning asset allocation funds that include alternative investments. Labor Secretary Lori Chavez-DeRemer praised the order, stating: “The federal government should not be making retirement investment decisions for hardworking Americans, including decisions regarding alternative assets.” She acknowledged steps already taken to rescind prior guidance that disadvantaged cryptocurrency investments and applauded the president for furthering efforts to enhance retirement plan flexibility by eliminating one-size-fits-all approaches.
During his first term, President Trump’s administration had issued guidance encouraging a portion of defined-contribution plan assets to be allocated to alternative investments, recognizing their potential to yield competitive returns and diversify portfolios. However, since that time, what the order describes as “burdensome lawsuits” and restrictive Department of Labor guidance have largely prevented millions of Americans from benefiting from these opportunities.
This executive order is a significant move to democratize access to alternative assets by aligning 401(k) participant portfolios more closely with those of institutional investors, potentially enhancing growth opportunities for everyday investors saving for retirement.
A full copy of the executive order and accompanying fact sheet are publicly available through the Department of Labor and White House websites for those seeking detailed information.