The White House has cleared a proposal to allow crypto in 401(k).
The U.S. Department of Labor (DOL) said that would ease restrictions by including cryptocurrencies and other “alternative assets” like private equity and real estate in 401(k) retirement plans.
The Office of Information and Regulatory Affairs (OIRA) completed its review late on March 25, 2026, after the proposal arrived for review in mid-January. This procedural step allows the DOL’s Employee Benefits Security Administration to move forward with publishing the proposed rule for public comment in the coming weeks.
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This development stems from an executive order signed by President Trump on August 7, 2025, titled “Democratizing Access to Alternative Assets for 401(k) Investors.” The order directed the DOL to reevaluate prior guidance on fiduciary duties under ERISA (Employee Retirement Income Security Act) for alternative investments in defined-contribution plans like 401(k)s, which hold roughly $12–14 trillion in assets.
It emphasized giving plan participants and fiduciaries more options for potential diversification and higher risk-adjusted returns, explicitly including digital assets (crypto), private equity, real estate, commodities, and related vehicles.
In May 2025, the DOL rescinded 2022 Biden-era guidance that had urged fiduciaries to exercise “extreme care” before adding cryptocurrency to 401(k) menus, reverting to a more neutral stance based on ERISA’s prudent fiduciary standard. The August 2025 executive order gave the DOL 180 days to act and encouraged coordination with the SEC and Treasury.
The current proposal aims to clarify fiduciary processes for offering funds or options that include these alternatives, without mandating their inclusion—decisions remain with plan sponsors and fiduciaries, who must still meet ERISA’s requirements to act prudently, solely in participants’ interests, and with diversification in mind.
The rule is still at the proposed stage. After publication, there will be a public comment period, possible revisions, and then a final rule. Even then, adoption would depend on employers and plan administrators choosing to add crypto or alt-asset options often via funds or wrappers rather than direct holdings, due to custody, volatility, and liquidity issues.
Proponents including the administration say it “democratizes” access to assets historically available mainly to institutions or high-net-worth investors, potentially improving returns and diversification for the ~90+ million Americans with 401(k)s. Crypto advocates see it as mainstreaming Bitcoin and digital assets in long-term portfolios.
Crypto and private equity are volatile, illiquid, opaque, and often carry higher fees compared to traditional stocks and bonds. Critics argue this could expose retirement savers—especially less sophisticated ones—to outsized losses, conflicts of interest, or unsuitable products, potentially undermining the conservative nature of retirement savings.
Historical precedent shows mixed results with alternatives in retail accounts. Employers may still hesitate due to fiduciary liability fears. Fiduciaries would need to perform due diligence, consider participant demographics, limit exposure where appropriate, and ensure proper education/disclosure.
Many experts expect slow, cautious rollout—likely starting with small allocations via professionally managed funds rather than self-directed crypto wallets. This fits into the current administration’s pro-crypto posture, including efforts to position the U.S. as a leader in digital assets. Markets have reacted positively to related news in the past, though broader factors like regulation, adoption, and macro conditions matter more for prices.
It’s a meaningful regulatory green light that could eventually expand options in 401(k)s, but implementation will be gradual, fiduciary-driven, and subject to safeguards. Retirement investors should consult advisors; this doesn’t override personal risk tolerance or the core advice to maintain diversified, low-cost portfolios suited to one’s time horizon. If the proposed rule is published soon, details on scope and limits will become clearer during the comment process.