Recently, the U.S. government issued a striking executive order requiring the Department of Labor, the Securities and Exchange Commission (SEC), and the Treasury Department to re-examine the restrictions on alternative assets in the Employee Retirement Income Security Act of 1974 (ERISA). This initiative aims to drive policy adjustments to incorporate non-traditional assets such as encryption, private sale equity, and real estate into retirement portfolios.

If the policy is ultimately implemented, it will have a profound impact on the market involving approximately 90 million U.S. retirement accounts related to 401(k). The current market size is estimated to be between $12 trillion and $12.5 trillion, and it may open up more diversified investment channels in the future.

This policy shift may bring several positive impacts: First, it will provide investors with a more diverse range of asset options, particularly by introducing high-growth potential assets such as cryptocurrencies, which is expected to enhance the long-term returns of investment portfolios. Second, this could stimulate financial innovation, prompting financial institutions and asset management companies to develop structured products specifically aimed at retirement plans, such as funds that include digital assets. Finally, this initiative will open the door for private equity and encryption asset management firms to access the vast pool of retirement savings, with large asset management companies like Blackstone, KKR, and Apollo likely to benefit from this.

However, this policy shift inevitably brings some risks and controversies. Most notably, the increase in investment risk: the cryptocurrency market is highly volatile, and other alternative assets also face issues such as difficulty in valuation and poor liquidity, which may increase the risk of significant losses to retirement assets. In addition, the private sale market generally has characteristics of low transparency and high fees, and investors may need to bear higher costs while facing difficulties in exiting over the long term.

Finally, this policy change may also raise concerns regarding fiduciary responsibilities. How pension managers balance returns and risks when introducing these high-risk assets, while ensuring they fulfill their fiduciary duties, will become a complex and challenging issue.

Overall, this policy shift represents a significant transformation in the field of pension investment in the United States, bringing new investment opportunities while also carrying non-negligible risks. Effectively managing risks while seizing opportunities will be an important issue that policymakers and market participants face together.