The White House finalized its review of a Department of Labor proposal enabling $12 trillion in 401(k) assets to include alternative investments like crypto and private equity. This decision stems from an August 2025 executive order by President Donald Trump aimed at expanding investment options under ERISA guidelines.
The proposal addresses employer concerns over fiduciary liability when offering volatile asset classes. It provides legal protection if proper due diligence is followed. However, surveys indicate most experienced retirement investors remain cautious. Nearly half oppose the plan, with only 34% supporting it, citing risks as a primary deterrent.
This marks a reversal from the prior administration’s stance discouraging digital assets in retirement plans. The DOL will now publish the rule for public comment, though finalization may face delays amid industry feedback and potential legal challenges.