The US Labor Department published a proposed regulation Monday intended to give 401(k) participants access to alternative investments, including crypto assets like Bitcoin.
The Employee Benefits Security Administration framed the rule as historic, establishing a process-driven framework for fiduciaries to evaluate non-traditional assets for defined contribution plans. The safe-harbor procedures guide plan managers through selection, requiring evaluation of performance, fees, liquidity, and complexity.
The department emphasized the rule is asset-class neutral, endorsing no specific investment but setting a prudent process. The move follows President Trump's executive order on democratizing access to alternative assets.
Officials said the proposal returns the agency to a focus on fiduciary process rather than picking winners. Deputy Secretary of Labor Keith Sonderling stated, "The department's days of picking winners and losers are over."
The proposal aims to remove regulatory uncertainty stemming from 2022 guidance that discouraged crypto options. Treasury Secretary Scott Bessent praised it as a step in ushering in President Trump's Golden Age. SEC Chairman Paul Atkins also expressed support, noting the importance of enabling Americans to participate in innovation through diversified investments.
If finalized, the rule would provide fiduciaries a structured path to consider crypto without immediate compliance risks.