President Trump on Thursday signed an executive order to allow private equity and other alternative assets into 401(k) retirement accounts.

Why it matters: This is a major realignment of the capital markets, and could result in private equity becoming even more ubiquitous.

Catch up quick: Federal rules currently prevent most defined-contribution plans from investing in alt assets like private equity, private credit, real estate, and cryptocurrencies. In short, it's considered a breach of fiduciary duty. • As such, they mostly invest in stocks and bonds. • Trump issued guidance in his first term to relax these restrictions, but the language was later rescinded by former president Biden.

Driving the news: Trump's new executive order goes further, giving the Department of Labor 180 day

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