The U.S. Senate Committee on Banking, Housing and Urban Affairs published a letter from Ranking Member Elizabeth Warren, alongside the ranking members of the House Committee on Education and Workforce and the Senate Committee on Health, Education, Labor and Pensions, urging the U.S. Department of Labor to withdraw its proposal to allow private equity, digital assets, private credit and other alternative assets in 401(k) plans. The lawmakers argued that expanding access to such assets in retirement plans would expose workers and retirees to higher costs, greater complexity and increased volatility. The letter said the proposal could open an estimated USD 14.2 trillion in retirement savings to private equity, digital assets, private credit, high-cost annuities and other alternative investments. It argued these products are more expensive, opaque and risky than traditional 401(k) investments, and also raised conflict-of-interest concerns involving President Trump and his family, citing a Wall Street Journal report that the Trump family had gained as much as USD 5 billion in paper wealth after a crypto venture launched trading in a new digital currency.
U.S. Senate Committee on Banking, Housing and Urban Affairs2026-06-02
U.S. Senate Committee on Banking, Housing and Urban Affairs ranking member urges Labor Department to rescind proposal allowing alternative assets in 401 k plans
The U.S. Senate Committee on Banking, Housing and Urban Affairs published a letter from Ranking Member Elizabeth Warren and other senior lawmakers urging the U.S. Department of Labor to withdraw its proposal to permit private equity, digital assets, private credit and other alternative assets in 401(k) plans. The letter warns the proposal could expose an estimated USD 14.2 trillion in retirement savings to higher-cost, more complex and volatile products, and raises conflict-of-interest concerns tied to President Trump and his family’s reported gains from a crypto venture.