The US Department of Labor has proposed a rule that could allow cryptocurrencies and other alternative assets into 401(k) retirement plans, potentially opening trillions of dollars in capital to digital assets.
The proposal follows an executive order from President Donald Trump directing regulators to expand access to alternative investments, including crypto, private equity and real estate, within retirement portfolios.
“This proposed rule will show how plans can consider products that better reflect the investment landscape as it exists today,”
Labor Secretary Lori Chavez-DeRemer said.
If adopted, the change would mark a major shift away from traditional stock-and-bond-focused retirement plans, allowing broader exposure to assets such as digital tokens and private-market funds.
Supporters argue the move could improve diversification and align retirement investing with how individuals already allocate capital outside pension accounts.
However, critics including Senator Elizabeth Warren warn that adding volatile and complex assets like crypto could expose workers to higher risks, fees and potential losses.
The potential impact on crypto markets could be significant, as even a small allocation from large 401(k) plans could translate into millions or billions of dollars flowing into digital assets.