The US administration recently issued an executive order to expand access to alternative investments in ERISA-governed retirement accounts. The order titled Democratizing Access to Alternative Investments for America's Workers aims to modernize retirement plan investment options by including alternative investments, such as private equity, private credit, real estate, and digital assets like cryptocurrency, as designated investment alternatives.
The order calls on federal regulators to support their inclusion in 401(k) and other ERISA-covered retirement accounts by, among other things, directing (1) the US Department of Labor to issue guidance or take regulatory steps to support the use of alternative investments in 401(k) plans and other ERISA-covered retirement vehicles within 180 days and (2) the Securities and Exchange Commission (SEC) to facilitate access to alternative assets for participant-directed defined-contribution retirement plans by revising applicable regulations and guidance.
For more details, read our LawFlash on why this new executive order matters and for important next steps for plan sponsors and asset managers.