New proposed rule would allow retirement plan managers to include crypto, private equity, and real estate in 401(k) investment options.
The US Department of Labor has proposed a landmark rule that could open the door for crypto assets in Americans' 401(k) retirement plans, potentially unlocking trillions of dollars in new capital for digital assets.
On March 30, the Department of Labor released a proposed rule that would allow 401(k) plan managers to include alternative assets such as cryptocurrencies, private equity, and real estate in their investment lineups. The rule follows President Trump's August 2025 executive order directing regulators to expand access to digital assets in retirement portfolios.
Labor Secretary Lori Chavez-DeRemer stated that the proposed rule will "show how plans can consider products that better reflect the investment landscape as it exists today." The regulation establishes process-based safe harbors for plan fiduciaries, requiring them to objectively evaluate factors including performance, fees, liquidity, valuation, and complexity before adding alternative investments.
The proposal opens a 60-day public comment period before any final rule is implemented.
US 401(k) plans hold trillions of dollars in retirement savings. Even a modest 1% allocation to Bitcoin by a large plan could channel millions into the crypto market. The rule represents a fundamental policy shift from the Labor Department's previous stance, which required "extreme care" before adding crypto to retirement plans, guidance that was rescinded in May 2025.
Critics, including Senator Elizabeth Warren, have warned the rule could expose workers to "higher risks, fees and potential losses." Supporters counter that expanding asset options gives workers more choice and access to a rapidly maturing asset class.
The 60-day comment period will be closely watched for industry and public feedback. Plan participants will not see immediate changes to their investment menus. Fiduciaries must first evaluate whether crypto assets meet the new due-diligence standards before offering them. The rule is expected to take effect later in 2026 if finalized, potentially coinciding with growing institutional crypto adoption following the SEC and CFTC's recent joint classification of 16 crypto assets as digital commodities.
The proposed rule marks another step in the mainstreaming of crypto as an institutional asset class. Whether retirement plans adopt crypto will depend on fiduciary evaluations and market conditions, but the regulatory green light removes a major barrier.
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Disclaimer: News content is for informational purposes only and should not be considered financial advice. Market conditions can change rapidly. Always conduct your own research.
