On August 7, 2025, President Donald Trump signed an executive order aimed at significantly expanding the range of investments available in 401(k) retirement plans. The directive instructs the Department of Labor to revisit and clarify its fiduciary guidelines for defined-contribution plans under ERISA. It also orders coordination with the Treasury and the SEC to explore regulatory updates that would make alternative investments—like private equity, real estate, and digital assets—more accessible to retirement savers. The White House framed the move as a democratization of investment choices, arguing that access to these options could enhance retirement outcomes through diversification and potentially higher returns.
While asset managers and younger savers stand to benefit from broader opportunity, concerns have also been raised. Critics point out that alternative assets typically come with high fees, low liquidity, and complex structures, as well as greater legal and transparency risks. Industry giants—such as BlackRock—are already designing retirement funds that include private and digital asset exposure. However, experts caution that meaningful adoption may take time due to the need for regulatory clarity and plan sponsors’ fiduciary responsibilities.
