On October 14, 2025, a significant shift in American retirement policy took center stage as Montana Congressman Troy Downing introduced the Retirement Investment Choice Act, a bill designed to enshrine President Donald Trump’s Executive Order 14330 into federal law. This move, which has already ignited lively debate among lawmakers, trade groups, and labor organizations, could fundamentally alter how millions of Americans invest for their futures—potentially ushering in a new era of alternative assets, from private equity to Bitcoin, in the nation’s 401(k) plans.
Downing’s legislation is straightforward in its intent: it would codify Trump’s executive order, signed on August 7, 2025, which directed the Department of Labor (DOL) and the Securities and Exchange Commission (SEC) to reduce regulatory barriers that have long prevented retirement plans from including nontraditional assets such as private equity, real estate, and digital currencies. The bill, known as the Retirement Investment Choice Act, is formally titled HR in the 119th Congress’s first session. Its text is brief but potent, stating that Executive Order 14330 “shall have the force and effect of law.”
The push for this legislation comes against the backdrop of a massive and growing retirement market. According to figures cited by proponents, the defined-contribution market in the United States held $12.2 trillion in assets as of March 31, 2025, with $8.7 trillion specifically in 401(k) plans. Supporters argue that even a modest allocation—say, a 0.1% default across just 10% of these plans—could generate $1.22 billion in new investment flows into cryptocurrencies like Bitcoin and Ethereum ETFs. That’s a hefty sum, and it’s not hard to see why the stakes are high.
Joining Downing as original cosponsors were Representatives Byron Donalds, Warren Davidson, Marlin Stutzman, Buddy Carter, and Barry Moore. The bill quickly garnered praise from trade groups such as the American Securities Association (ASA). Chris Iacovella, ASA President and CEO, was effusive in his support, stating, “ASA applauds Rep. Downing’s leadership in Congress to codify President Trump’s 401(k) Executive Order into law, which will expand investment opportunities for every American retirement saver and retiree.”
Downing himself has positioned the bill as a measure to “democratize access” to alternative investments for 401(k) savers nationwide. “Alternative investments hold the transformative potential to supercharge the financial security of countless Americans saving for retirement,” Downing said, according to multiple reports. “I applaud President Trump for his leadership to democratize finance and am proud to be leading the effort in Congress to codify his EO and enshrine this move for generations to come.”
Trump’s Executive Order 14330 was crafted to address what he and his allies describe as a longstanding inequity: while wealthy Americans and government pension participants have had access to alternative assets, more than 90 million Americans in employer-sponsored defined-contribution plans have largely been shut out. The order established a clear policy, allowing retirement plan fiduciaries to offer alternative assets “when such investments provided appropriate opportunities to enhance risk-adjusted returns.”
The range of assets covered by the order is broad, including private market investments, real estate holdings, digital asset vehicles, commodities, infrastructure projects, and lifetime income strategies. In practical terms, this means that, should the Retirement Investment Choice Act become law, average Americans could soon see options in their 401(k) menus that were once the exclusive domain of institutional investors and high-net-worth individuals.
The executive order also directed the DOL to reexamine its guidance on fiduciary duties under the Employee Retirement Income Security Act (ERISA) within 180 days—a move that specifically called for a review of the December 2021 Supplemental Private Equity Statement issued during the Biden administration. Trump’s order instructed the Secretary of Labor to clarify fiduciary processes for offering asset allocation funds that include alternative assets, and it directed the DOL to propose rules or guidance for fiduciaries to balance higher expenses against the objectives of achieving greater long-term returns and broader diversification.
Another important component of the executive order was its call for the SEC to work with the DOL on ways to facilitate access to alternative assets, including possible revisions to regulations on accredited investor and qualified purchaser status. The order also prioritized actions aimed at curbing ERISA litigation that, in Trump’s view, has constrained fiduciaries’ judgment in offering investment opportunities. As the president put it, regulatory overreach and the encouragement of lawsuits by trial lawyers have “stifled investment innovation and relegated 401(k) participants to asset classes that lack the long-term benefits achieved by public pension plans.”
Support for the legislation has come from a bipartisan coalition. Downing previously joined Financial Services Chairman French Hill, Capital Markets Subcommittee Chair Ann Wagner, and six committee members in a letter backing the executive action. The signatories included Representatives Frank Lucas, Warren Davidson, Marlin Stutzman, Andrew Garbarino, Michael Lawler, Troy Downing, and Mike Haridopolos. In their correspondence, the lawmakers specifically requested SEC assistance to the DOL in revising regulations regarding alternative assets in retirement plans and called for a review of bipartisan legislation concerning accredited investors.
The move to expand alternative asset access is not happening in a vacuum. On the same day Downing introduced his bill, New York City Mayor Eric Adams issued an executive order to establish a dedicated Office of Digital Assets and Blockchain Technology. Meanwhile, Senator Cynthia Lummis of Wyoming has been advocating for a Strategic Bitcoin Reserve as a tool for financial resilience and fiscal accountability. These developments, as reported by various outlets, signal a broader shift in U.S. policy toward blockchain innovation and crypto adoption.
Still, not everyone is on board with the rapid integration of digital assets into mainstream finance. Labor groups, including the AFL-CIO, have voiced concerns that hasty moves to include crypto in retirement plans could amplify systemic risks for workers and institutions. They worry that the volatility and regulatory uncertainty surrounding cryptocurrencies could jeopardize the hard-earned savings of ordinary Americans. As the debate unfolds, these voices are likely to play a crucial role in shaping the final contours of any new law.
With the Retirement Investment Choice Act now before Congress, the coming months will test whether lawmakers can balance the promise of democratized investing with the need to protect retirement savers from potential pitfalls. The outcome will not only influence the portfolios of millions of Americans but could also set a precedent for how the U.S. approaches financial innovation and retirement security in the digital age.
