President Donald Trump is set to sign an executive order allowing alternative assets like private equity, cryptocurrencies, and real estate into 401(k)s. The order will direct the U.S. Secretary of Labor to review fiduciary guidance on private market investments in retirement plans governed by ERISA.

This move is seen as a win for the alternative asset industry, which has been advocating for greater adoption of private assets in defined contribution plans. Private market exposure in 401(k)s was considered permissible in 2020, and has since grown significantly.

Bitcoin and private equity stocks like Apollo Group saw positive movement in response to the news. Asset managers and plan sponsors have been creating products for retirement vehicles that collectively hold $8.7 trillion in assets. Companies like BlackRock and Empower are also incorporating private investments into their retirement offerings.

The executive order signing is scheduled for noon and is expected to have a significant impact on the retirement investment landscape. This decision comes as part of Trump’s second term in office, reflecting a shift towards embracing alternative assets in retirement planning.

Read more at CNBC: Trump order will allow alternative assets like cryptocurrencies, private equity in 401(k)s