BREAKING: US Labor Department Proposes Opening $10T 401k Plans to Crypto Investments

The US Department of Labor has issued a landmark proposal to unlock cryptocurrency investment options within the nation's $10 trillion 401k retirement savings system. The new rule, announced today, aims to clear regulatory hurdles and reduce litigation risks for plan fiduciaries, potentially granting millions of American workers access to crypto assets through their retirement portfolios.

The proposed regulation explains the steps that managers of 401k plans should take when considering crypto assets as a component in their investment lineups and establishes a set of process-based safe harbors for plan fiduciaries to use when selecting designated investment alternatives. The proposal, a recent executive order, “Democratizing Access to Alternative Assets for 401(k) Investors,” was passed by Trump. Under the proposed rule, when selecting investment alternatives, plan fiduciaries would need to objectively, thoroughly, and analytically consider and make determinations on factors. These include performance, fees, liquidity, valuation, performance benchmarks, and complexity.

“Our goal is to deliver on President Trump’s promise for a new golden age by fostering a retirement system that allows more Americans to retire with dignity,” said U.S. Secretary of Labor Lori Chavez-DeRemer. “This proposed rule will show how plans can consider products that better reflect the investment landscape as it exists today. This greater diversity will drive innovation and result in a major win for American workers, retirees, and their families.”

“The Treasury Department is proud of this rulemaking effort, which is another step in ushering in President Trump’s Golden Age,” said U.S. Secretary of the Treasury Scott Bessent. “This proposed rule is an initial step in implementing the President’s Executive Order safely and smartly, broadening access to additional retirement plan options for millions of Americans while being mindful of the importance of protecting retirement assets. Treasury is grateful for the Department of Labor’s partnership and looks forward to continued engagement as the rulemaking process continues.”