US President Donald Trump will shake off the roof of the West Wing of the White House when he tours in Washington, DC on August 5, 2025.
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President Donald Trump signed an executive order on Thursday to allow 401(k) alternative assets, including private equity, cryptocurrency and real estate, according to officials at the luxury White House.
The executive order directs the U.S. Secretary of Labor to consider fiduciary guidance on private market investments in 401(k) and other defined lending plans in compliance with the Employee Retirement Income Security Act of 1974 (ERISA). Federal law sets minimum standards for most retirement plans.
Trump has signed an executive order scheduled for midday. The development was first reported by Bloomberg News.
The executive order marks a major victory for the alternative asset industry. This drives greater adoption of private assets in defined contribution plans under Trump’s second term.
Bitcoin jumped Thursday in response to the news. Private equity stocks such as Apollo Group were slightly higher in early trading on Thursday.
Private market assets have traditionally been excluded from the 401(k) even if they were accepted into pension funds and university contributions.
However, the private market exposure of the 401(k) plan was deemed acceptable in 2020 when the Labor Department issued an information letter under the first Trump administration that it could be suitable for contribution plans defined under certain conditions. This guidance was later confirmed by Biden’s agency.
Its existence has already grown. Asset Managers and Planning Sponsors created a product for retired vehicles where Americans collectively hold about $8.7 trillion in assets, according to 401(k)s data at the end of the first quarter of 2025 from the Investment Company Research Institute.
In June, BlackRock, the world’s largest asset manager, said it launched the 401(k) Target Date Fund in the first half of 2026, including a 5% to 20% allocation to private investments. Empower, the country’s second largest retirement planning provider, said he will join asset managers such as Apollo and will begin allowing private assets in some accounts later this year.
– Report by Megan Kasera on CNBC
