The U.S. Department of Labor has proposed a rule that would facilitate the inclusion of cryptocurrencies and alternative assets in 401(k) retirement plans.
The Department of Labor of the United States has proposed a new rule that would make it easier for 401(k) retirement plans to include alternative assets such as cryptocurrencies, private equity, and real estate. The proposal, announced on Monday March 30, is a direct response to the executive order signed by President Donald Trump in August, which had tasked the Department of Labor and the Securities and Exchange Commission with facilitating access to alternative investments in retirement plans.
Labor Secretary Lori Chavez-DeRemer commented on the proposal with an official statement: “This proposed rule will show how plans can consider products that better reflect the investment landscape as it exists today.” If adopted, the rule would mark a significant shift in the structure of American retirement plans — historically focused on stocks and bonds — opening the door to digital tokens and private market funds not listed on public exchanges.
The move is part of a path already underway. Last May, the Department of Labor had revoked a previous guidance that urged fiduciaries to exercise “extreme caution” before adding cryptocurrencies to retirement plans. Trump’s executive order had gone further, calling for digital assets to be treated on equal footing with other investment options available in 401(k) plans.
The proposal has, however, drawn criticism from some lawmakers. Senator Elizabeth Warren sharply attacked the measure in a statement: “As cracks emerge in the private credit market, private equity returns fall to 16-year lows, and cryptocurrencies continue to decline, President Trump has decided this is the right time to insert all these risky assets into Americans’ 401(k)s.”
American 401(k) plans hold trillions of dollars in retirement savings, and even a small reallocation toward digital assets could channel new capital into the sector. The potential scale of the measure makes it one of the most significant regulatory developments for the sector since the start of the Trump presidency.
The news comes amid growing institutional interest in digital assets. Fannie Mae recently approved mortgages backed by bitcoin and digital assets in partnership with Better and Coinbase, while in Australia the Hostplus pension fund is evaluating access to digital assets. The global trend toward integrating cryptocurrencies into institutional savings instruments now appears firmly established.
