Trump signs executive order paving way for crypto, alternative assets in 401(k)s

The order directs the Secretary of Labor to "reexamine the Department of Labor’s guidance on a fiduciary’s duties regarding alternative asset investments in ERISA-governed 401(k) and other defined-contribution plans," and to clarify the Labor Department’s "position on alternative assets and the appropriate fiduciary process associated with offering asset allocation funds containing investments in alternative assets," per a fact sheet from the White House.

Under the order, the Securities and Exchange Commission is directed to "facilitate access to alternative assets for participant-directed defined-contribution retirement savings plans by revising applicable regulations and guidance."

The order states that while over 90 million Americans participate in employer-sponsored contribution plans, "the vast majority of these investors do not have the opportunity to participate, either directly or through their retirement plans, in the potential growth and diversification opportunities associated with alternative asset investments."

"A combination of regulatory overreach and encouragement of lawsuits filed by opportunistic trial lawyers has stifled investment innovation and largely relegated 401(k) and other defined-contribution retirement plan participants to asset classes whose returns lack the very same long-term net benefits allowed for and achieved by public pension plans and other institutional investors," the order stated.

"My Administration will relieve the regulatory burdens and litigation risk that impede American workers’ retirement accounts from achieving the competitive returns and asset diversification necessary to secure a dignified, comfortable retirement."