US President Donald Trump will shake off the roof of the West Wing of the White House when he tours in Washington, D.C. on August 5, 2025.
Win McNamee | Getty Images News | Getty Images
President Donald Trump signed an executive order Thursday laying the foundation for adding alternative assets such as private equity, cryptocurrency and real estate to the 401(k).
The executive order directs the U.S. Secretary of Labor to consider trustee guidance on 401(k) and other defined contribution plans in accordance with the Employee Retirement Income Security Act of 1974, or the ERISA. Federal law sets minimum standards for most retirement plans.
The executive order is a major victory for the alternative assets industry, driving the greater adoption of private assets in a defined contribution plan under Trump’s second term. Although it also poses new risks to investors.
Bitcoin It jumped on Thursday in response to the news.
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.
June, Black RockThe world’s largest asset manager said it launched a 401(k) target date fund in the first half of 2026, including a 5% to 20% allocation to individual investments. In May, Empower, the country’s second largest retirement planning provider, said he was participating in such asset managers. Apollo Later this year, we will begin permitting private assets on some accounts.
BlackRock and Apollo both traded early on Thursday, but the stocks gave up on those profits. BlackRock fell 0.7%, while Apollo passed 3.3%. KKR A 1.6% decrease.
– Report by Megan Kasera of CNBC.
