The U.S. Department of Labor has expressed support for President Trump’s recent Executive Order titled “Democratizing Access to Alternative Assets for 401(k) Investors.” Secretary Lori Chavez-DeRemer and Deputy Secretary Keith Sonderling issued statements highlighting the significance of this policy shift.
“The federal government should not be making retirement investment decisions for hardworking Americans, including decisions regarding alternative assets,” said Secretary Chavez-DeRemer. “The Department of Labor already took action to rescind the Biden Administration’s guidance that disadvantaged crypto investments. This Executive Order further supports our efforts to improve flexibility and eliminate unfair one-size-fits-all approaches, and I applaud President Trump for taking decisive action.”
Deputy Secretary Sonderling added, “All American workers should be able to look forward to a secure and prosperous retirement. Today’s Executive Order directs the Department of Labor to level the playing field for all Americans saving for retirement by breaking down barriers to investment opportunities previously accessible only to certain pension plans and the very wealthy. American workers should be able to make choices that best meet their personal financial needs, and President Trump’s Executive Order will empower them to do that.”
According to the department, the Executive Order instructs officials to review current guidance on fiduciary responsibilities so that asset allocation funds with alternative asset investments can be made available in retirement plans governed by the Employee Retirement Income Security Act of 1974 (ERISA). The order also requires clarification on how these assets can be included under ERISA regulations.
Additionally, the Secretary is tasked with prioritizing actions aimed at reducing unnecessary ERISA litigation, which may prevent fiduciaries from using their judgment when selecting investments.
Further information about the Executive Order is available through official channels.
