U.S. President Donald J. Trump has signed a new Executive Order to expand access to alternative assets for 401(k) retirement plan investors.
With this move, Trump took a significant step towards fulfilling his promise to make the United States the “crypto capital of the world,” according to a document published by the White House.
The executive order signed today allows contribution-based retirement plans like 401(k)s to invest in alternative asset classes, such as cryptocurrencies, private equity funds, real estate, and more. This will allow investors to achieve greater returns and diversification beyond traditional market instruments.
The executive order directs the Secretary of Labor to revise existing guidance on fiduciary duty for alternative investments in retirement plans governed by ERISA. It also seeks to clarify the fiduciary procedures that must be followed when incorporating such investments into mutual funds.
The order also requires the Department of Labor to collaborate with the Treasury Department, the Securities and Exchange Commission (SEC), and other regulatory agencies to consider parallel regulatory changes. The SEC was also instructed to update regulations that would facilitate access to alternative assets for individual-managed contribution-based retirement plans.
*This is not investment advice.