Donald Trump signed an executive order on Thursday authorizing bitcoin and other alternative assets, such as real estate and private equity, to be included in 401(k) retirement portfolios.
The new order paves the way for retirement fund managers to access a $12 trillion market, potentially benefiting large alternative asset managers.
Regulatory shift and industry reaction
Trump’s move aligns with his administration’s support for the bitcoin industry and a rollback of previous regulations.
In the text of the executive order, Trump stated:
“My Administration will relieve the regulatory burdens and litigation risk that impede American workers’ retirement accounts from achieving the competitive returns and asset diversification necessary to secure a dignified, comfortable retirement.”
The order instructs the labor secretary to coordinate with federal agencies, including the Treasury and Securities and Exchange Commission, on possible parallel rule changes to further facilitate these investments.
BlackRock and industry response
BlackRock, the world’s largest asset manager, has announced plans to launch a retirement fund including private equity and credit assets, responding quickly to the regulatory change.
However, CEO Larry Fink warned that litigation risks remain a major concern, and widespread adoption may not be immediate.
