The bipartisan coalition expressed support for expanding access to alternative assets to help 90 million Americans secure dignified retirement outcomes.
“Every American preparing for retirement should have access to funds that include investments in alternative assets when the relevant plan fiduciary determines that such access provides an appropriate opportunity to enhance the net risk-adjusted returns.”
The lawmakers encouraged the SEC to swiftly assist the Department of Labor and make necessary revisions to current regulations and guidance regarding alternative asset access in participant-directed defined-contribution retirement savings plans.
The letter specifically requests the SEC review of bipartisan legislation concerning accredited investors advanced in the 119th Congress.
Trump’s executive order directs the Secretary of Labor to consult with the SEC to determine necessary parallel regulatory changes.
The order also instructs the SEC to facilitate alternative asset access by revising applicable regulations and guidance, potentially including consideration of accredited investor and qualified purchaser status modifications.
As of March 31, the defined-contribution market had assets of $12.2 trillion, with $8.7 trillion in 401(k) plans. Even modest default allocations could generate substantial crypto demand through systematic payroll contributions and employer matches.
A 0.1% default allocation across 10% of plans would produce $1.22 billion in crypto investment flows. Meanwhile, broader adoption scenarios suggest potential ranges from $15.3 billion at 0.5% defaults across 25% of plans to $61 billion if 1% defaults were implemented across half the market.
Distribution will likely run through target date funds and collective investment trusts, where most participant dollars flow automatically.
Implementation now depends on agency guidance, product filings, and recordkeeper integrations before plan committees can update investment policy statements to include cryptocurrency allocations.
