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source:The White House of the United States, compiled: bitchain vision
Under the Presidential powers granted to me by the United States Constitution and laws, now order:
Section 1: Purpose.Many wealthy Americans and government workers involved in public pension programs can invest in a variety of alternative assets or beneficiaries of these investments.However, despite more than 90 million Americans participating in employer-sponsored fixed contribution plans, the vast majority of these investors do not have the potential growth and diversification opportunities brought about by participating in alternative asset investments directly or through their retirement plans.
401(k) The trustees of the plan and other contribution-based retirement plans must carefully review and consider all aspects of the private equity product, including the ability, experience and effectiveness of managing alternative asset investments.They do this to protect the retirement accounts of Americans they manage and to fulfill fiduciary responsibilities for prudent, safe investment.
During my first term, my administration issued a 2020 message letter acknowledging that prudent federal action can encourage the promotion of investment strategies in which part of the interests of retirement plan participants are allocated to alternative assets, as is the case with institutional investors.
Yet the cumbersome litigation that attempts to challenge the reasonable decision-making of loyal and regulated trustees, and the suffocating Labor Department guidance issued since my first term, deprives millions of Americans of the opportunity to benefit from alternative asset investments.Such assets account for an increasingly large share of the portfolio of public pension and fixed income retirement plans, which not only provide competitive returns but also provide opportunities for diversified investments.
The combination of over-regulatory intervention and the encouragement of opportunistic litigation lawyers to file lawsuits has curbed investment innovation, resulting in the majority of participants in 401(k) plans and other fixed-payment retirement plans being able to invest in asset classes with returns far below the long-term net income that public pension funds and other institutional investors can earn.
My administration will reduce regulatory burdens and litigation risks that hinder the U.S. labor’s retirement accounts from achieving competitive returns and asset diversification that are critical to ensuring a dignified and comfortable retirement life.
Section 2: Strategy.The U.S. policy is that every American preparing for retirement should have the opportunity to obtain funds that include investments in alternative assets, provided that the relevant program trustees determine that such opportunities provide appropriate opportunities for plan participants and beneficiaries to increase risk-adjusted net income for their retirement assets.
Section 3: Democratize the acquisition of alternative assets.(a) For the purposes of this Order, the term “alternative asset” means:
(i) Private market investments, including direct and indirect interests in equity, debt or other financial instruments not traded on public exchanges, including investments seeking to play an active role in the management of such companies, if applicable;
(ii) Direct or indirect real estate interests, including debt instruments secured by direct or indirect real estate interests;
(iii) Holding active management investment instruments invested in digital assets;
(iv) Direct and indirect commodity investment;
(v) Direct and indirect benefits to infrastructure construction financing projects; and
(vi) Lifetime income investment strategy, including longevity risk sharing fund pool.
(b) Within 180 days from the date of this order, the Minister of Labor (hereinafter referred to as the “Secretary”) shall re-examine the Ministry of Labor’s past and present guidance on the performance of the obligations of the Trustee under the Employees Retirement Income Security Act of 1974 (the Employees Retirement Income Security Act as amended) (29 USC 1104), which relates to the provision of asset allocation funds to participants containing investments in alternative assets.In conducting this re-examination, the Minister should consider whether to revoke the Supplementary Private Equity Statement issued by the Ministry of Labor on December 21, 2021.
(c) Within 180 days from the date of this order, the Minister shall, in the event that he thinks appropriate and complies with applicable law, seek further clarification of the Ministry of Labor’s position on alternative assets and the appropriate fiduciary procedures related to the provision of an asset allocation fund containing alternative assets under the Employee Retirement Income Security Act (ERISA).Such clarifications must be designed to determine the criteria that trustees should use to prudently balance potential higher spending with the goal of seeking higher long-term net returns and broader investment diversification.The Minister shall also propose rules, regulations or guidance as he thinks appropriate to clarify the obligations of the Trustee to plan participants under the Employee Retirement Income Security Act for the Employees’ Retirement Income Protection Act, which may include properly calibrated safe harbor clauses in the context of the Employees’ Retirement Income Protection Act.In implementing the directives in this section to further implement the policies set out in this order, the Minister shall prioritize action to curb the Employee Retirement Income Security Act litigation that limits the ability of the trustee to use the best judgment to provide investment opportunities to the relevant program participants.
(d) In implementing the directives in this section, the Secretary shall consult with the Secretary of Finance, the Securities and Exchange Commission (SEC) and other federal regulators as needed to achieve the policy objectives of this order, including parallel regulatory changes that may be included in other federal regulators.
(e) The SEC should consult with the Minister to consider how to provide participants in the participant-oriented fixed contribution retirement savings plan (PDS) with the convenience of investing in alternative assets.Such accommodation measures may include, but are not limited to, consideration of revising existing SEC regulations and guidelines related to Qualified Investors (ADS) and Qualified Buyers (QPIs) eligibility to achieve the policy objectives of this Executive Order.
Section 4: General provisions.(a) Nothing in this Order shall be construed as a damaging or otherwise affecting:
(i) the powers granted by law to an administrative department or agency or its chiefs; or
(ii) Functions of the Director of the Office of Management and Budget related to budget, administrative or legislative proposals.
(b) This Order shall be implemented in accordance with applicable law and in accordance with the circumstances of appropriation.
(c) This Order is not intended and does not create any substantive or procedural rights or interests that either party may enforce in accordance with law or equitable law against the United States, its departments, institutions or entities, its officers, employees or agents, or any other person.
(d) The cost of issuing this order is borne by the Department of Labor.
Donald J. Trump
White House,
August 7, 2025.
