GOP Bill Seeks to Cement Alternative Assets in 401(k) Plans

U.S. House Republicans have introduced legislation that aims to permanently open the door for defined contribution, or DC, retirement plans, such as 401(k)s to offer alternative investments like private equity and digital assets, such as cryptocurrency.

The bill, titled the Retirement Investment Choice Act, was introduced by Troy Downing (R-Mont.) and seeks to codify the executive order signed by the president in August.

“Alternative investments hold the transformative potential to supercharge the financial security of countless Americans saving for retirement,” Downing said in a statement. “I applaud President Trump for his leadership to democratize finance and am proud to be leading the effort in Congress to codify his [executive order] and enshrine this move for generations to come.”

The executive order directs the U.S. Department of Labor and the U.S. Securities and Exchange Commission to provide regulatory guidance that would facilitate the inclusion of alternative assets in 401(k) and other DC plan investment menus.

Supporters, including Rep. Downing, argue that the move will “democratize access to alternative investments” for millions of American retirement savers, potentially enhancing returns and diversification. The proposed bill mandates the DOL and SEC to reduce regulatory obstacles that currently discourage plan sponsors from offering alternative investments.

In limited cases, plan sponsors already offer private asset-class investments, but the general landscape is one of caution due to complex fiduciary requirements and potential legal challenges.

The executive order sets a deadline for regulators to release initial guidance in February 2026, with final rules expected by the end of next year. The introduction of the House bill signals a legislative effort to ensure this policy direction remains.

Cosponsors of the bill include Representatives Byron Donalds (R-Fla.), Warren Davidson (R-Ohio), Marlin Stutzman (R-Ind.), Buddy Carter (R-Ga.), and Barry Moore (R-Ala). The American Securities Association has also expressed support for the legislation.

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