The U.S. Department of Labor has released a proposed rule that would open 401(k) retirement accounts to alternative assets, including cryptocurrencies like bitcoin, marking a significant step toward implementing President Donald Trump’s executive order.
What the rule proposes
The draft rule outlines the steps 401(k) plan managers must take when considering alternative assets, defining digital assets as:
A new form of investing that includes a wide variety of assets that can be stored and transmitted digitally, including cryptocurrencies such as bitcoin and other tokens.
If finalized, the rule would create a safe harbor for retirement plans governed by the Employee Retirement Income Security Act.
Plan managers would be required to assess factors including performance, fees, liquidity, valuation, and complexity before making any allocations.
Treasury Secretary Scott Bessent said in a statement:
“This proposed rule is an initial step in implementing the President’s Executive Order in a safe and smart manner, broadening access to additional retirement plan options for millions of Americans while being mindful of the importance of protecting retirement assets.”
A massive potential market
Americans held roughly $10.1 trillion in 401(k) plans at the end of 2025, up from $9 trillion a year earlier, according to data from the Investment Company Institute.
The Labor Department noted that while plan managers have always had the authority to consider alternative assets, “historically, almost none have done so.”
Deputy Secretary of Labor Keith Sonderling added:
“The department’s days of picking winners and losers are over. Our rule clearly spells out that managers must evaluate any and all potential product offerings by following a prudent process.”
Political pushback
Senator Elizabeth Warren criticized the proposal, warning it could expose retirement savers to risky assets.
The agency will open a 60-day public comment period after publishing the proposal in the federal register.
The rule follows an executive order Trump signed in August directing the Labor Department to pave the way for alternative assets in retirement plans, which also requested the SEC to revise applicable regulations to facilitate access.
