House Bill Introduced to Codify Executive Order Allowing Access to Alternatives in 401(k) Plans

In October, Representative Troy Downing (R-MT) introduced the “Retirement Investment Choice Act” (H.R. 5748) which would codify President Donald J. Trump’s Executive Order 14330 by directing the Department of Labor and Securities and Exchange Commission (SEC) to reduce regulatory barriers prohibiting investments like private equity, real estate, and digital assets from being eligible for inclusion in 401(k) retirement plans. The legislative text of the bill includes one sentence, stating “Executive Order 14330 (90 Fed. Reg. 38921; relating to democratizing access to alternative assets for 401(k) investors) shall have the force and effect of law.” The bill has five cosponsors all of whom are Republican Members of Congress, no Democrat has signed on as a cosponsor of the legislation. In October, the House Financial Services Subcommittee on Capital Markets postponed a hearing on retail access to the private markets which is likely to be rescheduled once the government shutdown has ended. In addition, in September several Republican members of the House Financial Services Committee led by full Committee Chairman French Hill (R-AR) and Capital Markets Subcommittee Chair Ann Wagner (R-MO) sent a letter to SEC Chairman Paul Atkins expressing their support for Executive Order 14330 to allow 401(k) investors to access alternative assets and urges the SEC to take action to implement the executive order.

Click here to read the full text of the “Retirement Investment Choice Act.”
Click here to read the press release from Representative Downing.
Click here to read the House Financial Services Republican letter to SEC Chairman Atkins.