Industry lobbyists see regulatory reform as critical to channeling private credit and equity into 401(k) plans amid mounting retail redemption pressures.

April 23, 2026

Lobbyists representing some of Wall Street’s largest alternative asset managers are urging the Securities and Exchange Commission to loosen restrictions on cross-trading between affiliated funds, arguing the change would accelerate the integration of private assets into American retirement accounts.

The Alternative Investment Management Association (AIMA), whose members include Blackstone and Apollo Global Management, is pushing the SEC to lift its existing prohibition on cross-trading in private assets, according to an internal email reviewed by Bloomberg News. The group’s Deputy Chief Executive Officer, Jiri Krol, made the case in a letter that current restrictions hamper registered funds — including interval funds and business development companies — from conducting transactions with affiliated private funds, even when such trades could enhance portfolio construction and liquidity management.

A Coordinated Push Into Retirement Plans

The lobbying effort coincides with a broader industry campaign to gain access to 401(k) plans and similar workplace retirement vehicles. Last month, the Department of Labor (DOL) issued draft guidance designed to reduce the threat of class-action lawsuits for employers who include private credit, private equity, and other illiquid investments in their retirement offerings.

While Krol described the DOL guidance as a positive development, he called for the SEC to join the broader reform initiative.

Why the Current Rules Are a Sticking Point

Existing rules confine cross-trading to securities with readily available market quotations and require execution at independent current market prices — conditions that effectively exclude:

• Private assets
• Fixed income securities
• Other alternative investments

Industry advocates contend that easing these constraints would help funds return capital to investors more efficiently and enable private funds to offload holdings to affiliated retail-oriented funds.

Redemption Pressures Heighten the Urgency

The timing carries particular weight for private credit managers. Major firms including Apollo, Blackstone, Carlyle Group, and Blue Owl Capital are facing a wave of redemption requests from retail-focused vehicles, and an inflow from retirement plans could help offset those outflows.

According to Krol’s letter, SEC commissioners and senior Treasury Department officials have been holding regular meetings with industry representatives to discuss the expanding private credit market and the appropriate regulatory framework for it.

Momentum Building Under a Friendlier Administration

AIMA initially raised the cross-trading issue with the SEC several months ago but sees renewed momentum stemming from the Trump administration’s broader effort to bring alternative assets into retirement portfolios. The SEC declined to comment, though the cross-trading rule appears on the agency’s regulatory flexibility agenda.

Privately, some alternative asset managers consider the DOL guidance insufficient and are exploring ways to involve the SEC more directly in rulemaking, according to people familiar with the discussions. Industry executives are preparing responses to the DOL proposal ahead of a June 1 deadline.

Legal and Industry Allies Join the Effort

Law firm Davis Polk, which counsels major private asset firms on their retail expansion strategies, is similarly preparing to advocate for cross-trading reforms. Partner Christopher Healey suggested that expanding the SEC’s cross-trading rules to permit transactions in illiquid investments with affiliates, accompanied by appropriate safeguards, would represent a logical step toward enhancing liquidity for retirement plan participants.

The Investment Company Institute and other industry groups have pursued comparable reforms, including a prior effort to permit cross-trading of fixed-income securities after the SEC tightened restrictions in 2020.