GOP Lawmakers Request Swift SEC Guidance on 401(k) Plans’ Alternative Investments
A group of Republican lawmakers publicly urged the Securities and Exchange Commission to swiftly implement changes that would open 401(k) retirement accounts to a broader range of alternative investments.
In a letter sent Monday to SEC Chairman Paul Atkins, the lawmakers expressed support for President Donald Trump’s August 7 executive order that encouraged wider adoption of alternative investments, including private market assets and cryptocurrencies, in defined contribution plans.
The order does so by directing the Department of Labor and the SEC to coordinate on regulatory adjustments that would “democratize” access to alternative assets within defined-contribution retirement plans.
The legislators emphasized that the SEC should review its regulations, including the criteria for accredited and qualified investors, to ensure more Americans can diversify their retirement portfolios.
They also argued that such reforms could extend alternative asset opportunities to retirement savers currently excluded under existing rules.
Critics of adding alternative investments in 401(k) plans have chafed at the lack of liquidity and transparency offered in private markets, as well as the volatility of assets such as cryptocurrency.
The letter was signed by House Committee on Financial Services Chair French Hill, R-Arkansas, and Representatives Ann Wagner, R-Missouri; Frank Lucas, R-Oklahoma; Warren Davidson, R-Ohio; Marlin Stutzman, R-Indiana; Andrew Garbarino, R-New York; Mike Lawler, R-New York; Troy Downing, R-Montana; and Mike Haridopolos, R-Florida.
Last month, Republican senators published a letter to the DOL similarly urging swift action.
