On August 7, 2025, President Donald J. Trump signed an Executive Order to expand investment choices for 401(k) plans by allowing access to alternative assets. This initiative aims to enhance retirement security for American workers, as over 90 million individuals currently participating in employer-sponsored defined-contribution plans have been limited in their ability to invest in such assets. The Executive Order directs the Department of Labor to reassess its guidance on fiduciary duties concerning alternative assets and to coordinate with other federal agencies to implement the necessary regulatory changes.

The President’s initiative addresses concerns that regulatory restrictions have hindered fiduciaries from including alternative investments in retirement portfolios, thus impacting workers’ retirement growth. By permitting investments in alternative assets like private equity, real estate, and digital assets, the administration seeks to offer competitive returns and more diverse investment strategies for retirees. This decision aims to provide everyday Americans with access to investment opportunities that have historically been more available to wealthier individuals and government employees.

Additionally, the Executive Order signifies President Trump’s commitment to improving financial opportunities for all Americans. It includes provisions to rescind previous guidance from the Biden Administration regarding digital assets, aligning with the President’s vision of establishing the U.S. as a leader in the cryptocurrency space. Through this initiative and the associated regulatory changes, the administration hopes to empower workers to build wealth and secure a more comfortable retirement.

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