The U.S. Department of Labor has proposed a new rule that could open $10 trillion in 401(k) retirement savings to cryptocurrency investments. The proposed regulation, stemming from an executive order by President Trump, aims to reduce regulatory burdens and litigation risks for plan fiduciaries. It would establish a process for managers to evaluate crypto assets based on specific factors like performance and liquidity.
The United States Department of Labor proposed a rule to allow cryptocurrency investments in $10 trillion worth of 401(k) savings accounts. This landmark proposal would clear regulatory burdens and lower litigation risks for prudent fiduciaries.
The regulation outlines steps managers must take when considering crypto assets for investment lineups. It establishes process-based safe harbors for fiduciaries selecting designated investment alternatives.
The proposal implements a recent executive order titled “Democratizing Access to Alternative Assets for 401(k) Investors,” which was passed by President Trump. Fiduciaries would need to objectively consider factors like performance, fees, and liquidity.
“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.”
U.S. Secretary of the Treasury Scott Bessent stated, “The Treasury Department is proud of this rulemaking effort, which is another step in ushering in President Trump’s Golden Age.” He called the rule an initial step to broaden access while protecting retirement assets.
