Source: White House, Translated by: Jinse Finance
Expanding Investment Choices for 401(k) Plans: Today, President Donald J. Trump signed an executive order allowing 401(k) investors to access alternative assets for higher returns and investment diversification.
The order instructs the Secretary of Labor to review guidelines regarding trustees' responsibilities for alternative asset investments in 401(k) plans and other defined contribution plans governed by ERISA.
The order directs the Secretary of Labor to clarify the Department of Labor's position on alternative assets and appropriate trust procedures related to asset allocation funds including alternative asset investments.
The order instructs the Secretary of Labor to consult with the Secretary of the Treasury, the Securities and Exchange Commission, and other federal regulatory agencies to determine if corresponding regulatory adjustments should be made to achieve the order's purpose.
The order instructs the Securities and Exchange Commission to facilitate access to alternative assets for participant-directed defined contribution retirement savings plans by modifying applicable regulations and guidelines.
Promoting Retirement Security through Diversified Investments: President Trump aims to provide American workers with more investment options to achieve stronger and more financially secure retirement outcomes.
Over 90 million Americans participate in employer-sponsored defined contribution plans, most of whom are currently restricted from investing in alternative assets, unlike wealthy investors and government employees' retirement plans.
Alternative assets such as private equity, real estate, and digital assets can provide competitive returns and diversified gains.
Excessive regulation and litigation risks limit trustees of ERISA-governed plans from incorporating alternative assets into their portfolios, hindering workers' retirement growth.
President Trump is expanding access to these assets to ensure all Americans can enjoy a dignified and comfortable retirement.
Accumulating Wealth and Securing Retirement for All Americans: President Trump is fulfilling his promise to provide more financial opportunities and retirement security for all Americans, ensuring they can accumulate wealth and prosper.
The Department of Labor under President Trump has already rescinded the Biden administration's guidelines on digital assets.
President Trump's "Big and Beautiful Act" fulfills his promise to ensure retirees can retain more of their hard-earned benefits.
President Trump pledges to make the United States the "World Crypto Capital", emphasizing the need to embrace digital assets to drive economic growth and technological leadership.
Through tax cuts and deregulation, President Trump is fulfilling his promise to make America prosperous again, allowing workers to save and invest more for retirement.
