Several major industry associations have asked the Department of Labor (DOL) to issue temporary sub-regulatory guidance for fiduciaries evaluating the inclusion of private equity, cryptocurrency, and other alternative investments in defined contribution (DC) plans. The request follows President Donald Trump’s recent executive order, which gave the agency six months to deliver regulatory guidance on how fiduciaries can prudently incorporate asset-allocation funds containing alternatives. 

In a letter to Secretary of Labor Lori Chavez-DeRemer, the American Retirement Association, the Financial Services Institute, the HR Policy Association, and the National Association of Professional Employer Organizations stressed that while a full notice-and-comment rulemaking is essential for a durable framework, it will take time to finalize. In the interim, they argued, fiduciaries need clarity to avoid “legal uncertainty that fosters litigation” and to enable innovation in DC plan offerings. 

The groups noted that the shrinking number of public companies—alongside the growth of private markets to more than $30 trillion in assets—has limited participant access to the same diversification strategies long used by defined benefit plans, endowments, and institutional investors. Without timely guidance, fiduciaries remain reluctant to add alternatives to DC plans, fearing costly lawsuits tied to unclear standards. 

The letter proposed interim measures such as a compliance assistance release, field assistance bulletin, tip sheet, or interpretive bulletin to help fiduciaries act with confidence while formal regulations move through the rulemaking process. “By combining timely sub-regulatory guidance with a commitment to formal rulemaking,” the groups wrote, “the Department can provide fiduciaries with the confidence needed to evaluate alternative investments today and create a lasting framework for the future.”