Trump’s 2025 Executive Order Opens Doors to Private Market and Digital Assets for Retirement Plans

On August 7th, 2025, President Trump signed an executive order that would increase the access of private securities and digital assets within retirement plans.[1]

This executive order would allow plan participants to include private market investments and digital assets in retirement plan investment options, expanding the investment options available to plan participants, creating added flexibility and creativity within investment lineups.

Balancing Opportunity and Responsibility

While this expanded access introduces exciting possibilities, it also raises important concerns for plan fiduciaries, those responsible for managing retirement plans in the best interests of participants. The inclusion of private market and digital assets within the plan may expose plans to litigation risks related to fees, liquidity, and prudence. As a result, fiduciaries must exercise heightened diligence and establish robust evaluation processes when considering these new asset classes. Despite these challenges, many investors are eager to diversify their portfolios, making these options attractive additions for employees.

Guidance From DOL & SEC

Plan sponsors will look to the DOL and SEC for continued guidance on implementing this executive order. Currently, the Labor Secretary is set to review all past and present guidance as it relates to fiduciary duties that could be impacted by this executive order. The Secretary will also clarify the DOL’s position on alternative assets and help define a fiduciary process for offering these investments. The DOL and SEC are expected to complete regulatory reviews and propose new guidance by February 2026.

The DOL is also set to revisit its “Supplemental Private Equity Statement” from December 2021, which clarified that offering funds with private equity components does not inherently violate fiduciary duties. However, it cautioned that such investments are complex, less liquid, and subject to unique regulatory standards.[2]

The SEC’s rule on mutual fund liquidity could also be examined. Under the current rules, no more than 15% of a mutual fund can be invested in assets that are deemed illiquid (take more than 30 days to be sold). This rule may restrict the inclusion of private equity and similar alternatives in retirement plans. Adjustments to this rule could enable broader access and better reflect the evolving investment landscape.

Additional guidance may come from the DOL that could strengthen the protections for plan sponsors that hire a 3(38) investment manager, a professional who assumes responsibility for investment decisions. Outsourcing to such managers can help mitigate fiduciary risk by creating a clear separation between the plan sponsor and investment choices.

Impact on Retirement Plans

The economic environment is shifting, with a growing number of high-value companies remaining privately held. In the US, 87% of firms with over $100 million in revenue are privately owned, and employees are increasingly seeing access to these markets. The executive order makes this possible, but also requires plan sponsors to reassess their investment lineups carefully.[3]

Higher allocations to private assets bring additional risks, making it essential for fiduciaries to consult DOL and SEC guidance and establish a consistent, prudent process for fund selection. Developing a replicable approach will help ensure compliance and success with the new regulations.

As retirement plan options evolve, it’s crucial for sponsors to stay informed and proactive. These new investment options may begin to appear in 401(k) plans, pending final guidance and implementation, by possibly late 2026. If you’d like to understand how this executive order could affect your retirement plan, contact a retirement plan advisor today to learn how this may impact your plan.

Interested in learning about other legislation that is impacting plans today check out our the Fiduciary Academy Session: “Q3 Litigation, Legislation, & Retirement Trends”

Sources:
[1]White House, “Democratizing Access to Alternative Assets For 401(K) Investors”
[2]Department of Labor, “U.S. Department of Labor Supplement Statement on Private Equity in Defined Contribution Plan Designated Investment Alternatives”
[3]Apollo Academy, “Many More Private Firms in the US”

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