WASHINGTON, Aug. 7 (Reuters) – US President Donald Trump is scheduled to sign an executive order on Thursday that aims to allow private equities, real estate, cryptocurrency and other alternative assets in his 401(k) retirement account.
“The order directs the Securities and Exchange Commission to promote access to alternative assets in defined retirement savings plans directed by participants by amending applicable regulations and guidance,” a White House official said on condition of anonymity.
The order also directs the Labor Secretary to consult with the Treasury Department, the SEC and other federal counterparts to determine whether those agencies should make changes to parallel regulations,” the official said.
Such a move would benefit large alternative asset managers such as Blackstone BX.N, KKR KKR.N, and Apollo Global Management Apo.n to open up a market for $12 trillion in retirement funds known as defined contribution plans to invest.
However, critics say it could add too much risk to retirement accounts such as the 401(k)s.
According to the White House public schedule, the president is expected to sign an executive order at 12:00 ET.
(Reporting by Jeff Mason, Additional Report by Rishabh Jaiswal of Bengaluru, Written by Doina Chiacu, Edited by Louise Heavens)
