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Alternative Market Briefing

President Trump signs EO opening up 401(k)s to alternatives

Monday, August 11, 2025

Bailey McCann, Opalesque New York:

A new executive order signed by President Trump could make it easier for alternatives to be part of 401ks. The order - Democratizing Access to Alternative Investments for America's Workers - will open up defined contribution retirement funds allowing them to invest in cryptocurrency, private equity and other alternatives. The order is the culmination of asset management industry lobbying that has been ongoing. Private equity managers have already started to respond with structures like evergreen funds which are likely a better fit for 401(k)s than traditional commingled funds.

That does not mean, however, that these asset classes will be in retail retirement funds immediately. The order calls on the Department of Labor to clarify its position on how ERISA funds should respond from a fiduciary standpoint if they want to include alternatives in their plans. The SEC and DOL will also need to work together to put out guidance on self directed accounts within defined contribution plans to provide clarity on how individual investors could pursue alternative investments on their own if they aren't part of an existing fund menu.

Asset managers may also need more assurances before they start offering alternatives to retail investors en masse. According to < a href=https://www.reuters.com/business/finance/trump-......................

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