WASHINGTON (Reuters) -U.S. President Donald Trump is expected to sign an executive order on Thursday that aims to allow private equity, real estate, cryptocurrency and other alternative assets in 401(k) retirement accounts, a White House official said.
"The order directs the Securities and Exchange Commission to facilitate access to alternative assets for participant-directed defined-contribution retirement savings plans by revising applicable regulations and guidance," the White House official said on condition of anonymity.
The order also directs the Labor Secretary to consult with her counterparts at the Treasury Department, the SEC and other federal "regulators to determine whether parallel regulatory changes should be made at those agencies," the official said.
Such a move would be a boon for big alternative asset managers such as Blackstone , KKR and Apollo Global Management by opening the $12 trillion market for retirement funds, known as defined contribution plans, to their investments.
However, critics say it could add too much risk to retirement accounts such as 401(k)s.
The president is scheduled to sign executive orders at 12:00 ET, according to a White House public schedule.
(Reporting by Jeff Mason, additional reporting by Rishabh Jaiswal in Bengaluru; Writing by Doina Chiacu; Editing by Louise Heavens)
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