Written by Norton Rose Fulbright US LLP on Oct 30, 2025
Senate Democrats asked Labor Secretary Lori Chavez-DeRemer and SEC Chair Paul S. Atkins to explain how fiduciary standards under ERISA will be upheld and what safeguards will be implemented to protect retirement investors from new policies expanding access to alternative assets in retirement plans.
In their letter, the Senators claimed that President Trump’s August 2025 Executive Order permitting private market funds and cryptocurrencies in 401(k)-style plans exposes workers’ retirement savings to volatile, opaque, and illiquid assets. They argued that rebranding these products as “alternative assets” conceals their risks and reverses longstanding Department of Labor guidance that had cautioned fiduciaries against such investments. The Senators cited SEC and GAO findings showing conflicts of interest, valuation discrepancies, and excessive fees in private funds, along with the speculative nature of digital assets.
The Senators argued that private equity funds often charge high fees and underperform public markets, while long lock-up periods can prevent savers from accessing their money in times of need. They also emphasized that the DOL and SEC must strengthen oversight, transparency, and due diligence requirements before expanding access to private and digital assets.
The Senators requested a response by November 17, 2025.
“We are deeply concerned that this reckless Executive Order will jeopardize the retirement savings of millions of Americans.” Democratic Senators Letter to Secretary Chavez-DeRemer and Chair Atkins
