Source: White House, Translated by: Jinse Finance
By the authority vested in me as President by the Constitution and the laws of the United States, I hereby order:
Section 1: Purpose. Many wealthy Americans and government employees participating in public pension plans can invest in or benefit from various alternative assets. However, despite over 90 million Americans participating in employer-sponsored defined contribution plans, the vast majority of these investors lack opportunities to directly or indirectly participate in potential growth and diversification offered by alternative asset investments.
Trustees of 401(k) plans and other defined contribution retirement plans must carefully review and consider all aspects of private market products, including the investment manager's capabilities, experience, and effectiveness in managing alternative asset investments. They do this to protect the retirement accounts of Americans under their management and fulfill their fiduciary responsibility for prudent, safe investments.
During my first term, my administration issued a 2020 guidance recognizing that prudent federal action could encourage investment strategies where a portion of retirement plan participants' interests are allocated to alternative assets, similar to institutional investors.
However, burdensome litigation challenging loyal and regulated trustees' reasonable decisions, along with suffocating Department of Labor guidance issued since my first term, have deprived millions of Americans of the opportunity to benefit from alternative asset investments. Such assets are increasingly represented in public pension and defined benefit retirement plan portfolios, offering not only competitive returns but also diversification opportunities.
Excessive regulatory intervention combined with speculative litigation by lawyers has suppressed investment innovation, causing 401(k) plan and other defined contribution plan participants to primarily invest in asset classes with returns far lower than the long-term net gains achievable by public pension funds and other institutional investors.
My administration will reduce regulatory burdens and litigation risks that hinder American workers' retirement accounts from achieving competitive returns and asset diversification, which are crucial for ensuring a dignified and comfortable retirement.
Section 2: Policy. It is the policy of the United States that every American preparing for retirement should have the opportunity to access funds containing alternative asset investments, provided that the relevant plan trustees determine such an opportunity can appropriately enhance the risk-adjusted net returns of plan participants and beneficiaries.
Section 3: Democratizing Access to Alternative Assets. (a) For the purposes of this order, "alternative assets" means:
(i) Private market investments, including direct and indirect interests in equity, debt, or other financial instruments not traded on public exchanges, including investments where managers (as applicable) seek to play an active role in managing these companies;
(ii) Direct or indirect real estate interests, including debt instruments secured by direct or indirect real estate interests;
(iii) Actively managed investment vehicles holding investments in digital assets;
(iv) Direct and indirect commodity investments;
(v) Direct and indirect interests in infrastructure project financing; and
(vi) Lifetime income investment strategies, including longevity risk-sharing funds.
(b) Within 180 days of this order's issuance, the Secretary of Labor (hereinafter "Secretary") shall review the Department of Labor's past and present guidance regarding trustees' obligations under the Employee Retirement Income Security Act of 1974 (as amended) (29 USC 1104), concerning asset allocation funds containing alternative asset investments. In conducting this review, the Secretary shall consider whether to rescind the Supplemental Private Equity Statement issued on December 21, 2021.
(c) Within 180 days of this order's issuance, the Secretary shall, as appropriate and consistent with applicable law, seek further clarification of the Department of Labor's stance on alternative assets and appropriate fiduciary procedures related to asset allocation funds containing alternative asset investments under ERISA. Such clarification must aim to establish standards trustees should use to prudently balance potential higher expenses with objectives of seeking higher long-term net returns and broader investment diversification. The Secretary shall also, as appropriate, propose rules, regulations, or guidance to clarify trustees' obligations to plan participants under ERISA when deciding whether to offer asset allocation funds containing alternative asset investments, potentially including appropriately calibrated safe harbor provisions. In executing the directives of this section to further the policies specified in this order, the Secretary shall prioritize actions to curtail ERISA litigation that restricts trustees' ability to exercise best judgment in providing investment opportunities to relevant plan participants.
(d) In executing the directives of this section, the Secretary shall consult as needed with the Secretary of the Treasury, the Securities and Exchange Commission (SEC), and other federal regulatory agencies to achieve the policy objectives of this order, including potential parallel regulatory changes by other federal regulatory agencies.
(e) The SEC shall, in consultation with the Secretary, consider how to facilitate alternative asset investments for participants in participant-directed defined contribution savings plans (PDS). Such facilitation may include, but is not limited to, considering amendments to existing SEC regulations and guidelines related to accredited investor (ADS) and qualified purchaser (QPI) qualifications to achieve the policy objectives of this executive order.
Section 4: General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) The authority granted by law to an executive department or agency, or the head thereof; or
(ii) The functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is intended to and does not create any substantive or procedural right or benefit, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
(d) The costs of executing this order shall be borne by the Department of Labor.
Donald J. Trump
The White House,
August 7, 2025.
