The U.S. Department of Labor unveiled a proposed rule that would permit 401(k) fiduciaries to consider alternative investments, including cryptocurrency funds, under a structured safe harbor framework.
The move aligns with former President Donald Trump’s directive to expand access to alternative assets in retirement accounts. It outlines criteria around performance, fees, liquidity, and valuation that fiduciaries must follow to gain legal protection.
As of 2025, Americans held $10.1 trillion in 401(k) plans, part of a larger $14.2 trillion defined contribution market. However, less than 1% of those assets are currently allocated to alternatives.
The proposal reverses prior guidance from the Biden administration urging caution on crypto inclusion. Experts say the change may boost long-term adoption but warn of ongoing operational challenges.
Andrew M. Bailey of the Bitcoin Policy Institute called retirement accounts "the holy grail" for crypto adoption, citing their vast capital and tax benefits. Still, he cautioned that risk-averse culture within retirement planning could slow uptake.
Lawyer and Web3 expert Joshua Chu said the proposal levels the playing field for digital assets and provides fiduciaries clarity where once there was uncertainty.
Implementation hurdles remain, including daily pricing mechanisms and risk controls for crypto investments inside retirement wrappers.