Overview

• President Trump’s executive order signed August 7 directs the Departments of Labor, Treasury and the SEC to redefine qualifying assets under ERISA for 401(k) plans to include private equity, real estate, cryptocurrencies and other alternative investments.
• The order is effective immediately but produces no changes to current 401(k) offerings as agencies must complete a rulemaking process over the coming months.
• Private equity firms valued at about $5 trillion, including Blackstone and Apollo Global Management, stand to access up to $12 trillion in U.S. retirement savings once new rules are finalized.
• Cryptocurrency companies such as Coinbase are preparing to tap retirement capital and bitcoin’s price jumped roughly 2 percent to over $116,000 after the announcement.
• Critics warn that adding volatile assets to retirement portfolios may elevate risk for millions of American savers.