President Trump Signs Executive Order to Expand Private Asset Access in 401(k) Plans
August 7, 2025 – Washington, D.C.
In a significant development for retirement account holders and alternative investment industries, President Donald Trump signed an executive order on Thursday aimed at easing access to private assets within 401(k) plans. This move is seen as a major victory for sectors such as private equity, real estate, and cryptocurrency, which are looking to tap into the substantial pool of retirement savings in the United States.
Currently, approximately $12.5 trillion is held in 401(k) retirement accounts across the country. However, access to alternative investments within these plans has traditionally been limited due to regulatory guidance and restrictions under the Employee Retirement Income Security Act of 1974 (ERISA).
The executive order directs the U.S. Department of Labor to reassess and potentially revise its existing guidance related to alternative asset investments in retirement plans governed by ERISA. The Labor Department is tasked with completing this reevaluation within six months, signaling potential forthcoming changes that could broaden the investment options available to workers saving for retirement.
Supporters of the move argue that facilitating greater inclusion of private equity, real estate, cryptocurrency, and other non-traditional assets in 401(k) plans could diversify investment portfolios and potentially enhance long-term returns for participants. Industry representatives from private investment firms have lauded the order as an opportunity to introduce innovative financial products to a wider audience.
Critics, however, caution that alternative assets often carry higher risks and less liquidity compared to traditional investments like stocks and bonds. Concerns remain about the protections for average retirement savers and the implications of greater exposure to potentially volatile or illiquid assets.
The executive order’s issuance reflects President Trump’s ongoing focus on financial deregulation and expanding investment freedoms. Market participants and employees alike will be closely monitoring forthcoming guidance from the Labor Department to understand how the new direction could reshape the 401(k) landscape.
For now, retirement plan administrators and participants should await further details as the Labor Department undertakes its review, expected to conclude by early 2026. —
This article is based on reporting by Jennifer A. Dlouhy and Allison McNeely for Bloomberg News.
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