US Labor Department Proposes Rule to Allow Crypto in 401(k) Retirement Plans

Mar 30, 2026

The U.S. Department of Labor released a proposed rule Monday that would create a safe harbor for 401(k) fiduciaries considering alternative investments including cryptocurrency funds, implementing President Trump's August executive order to expand access to digital assets in retirement plans. The rule reverses Biden-era guidance from May that urged extreme caution on crypto, which the current administration says exceeded federal law requirements. With Americans holding $10.1 trillion in 401(k) plans and the broader defined contribution market totaling $14.2 trillion, the proposal could open massive retirement fund flows to crypto despite current minimal adoption—only 4% of plans offered alternatives last year with just 0.1% of assets allocated to them. Supporters argue retirement accounts' decades-long horizons suit emerging technologies, while implementation will require fiduciaries to build robust pricing, liquidity and risk controls before crypto reaches retirees' accounts.

New Labor Department Rule Creating Safe Harbor for Crypto in 401(k) Plans

▪The U.S. Department of Labor stated that the Biden-era guidance on crypto in 401(k) plans went beyond what the federal law governing retirement plans requires
▪The U.S. Department of Labor rescinded Biden-era guidance in May that had urged fiduciaries to exercise extreme care before adding crypto to 401(k) menus
▪The U.S. Department of Labor's proposed rule was released for public inspection through the Federal Register on Monday and is scheduled for formal publication by Tuesday
▪The U.S. Department of Labor's proposed rule carries out a directive from President Donald Trump in August last year to expand access to alternative assets in 401(k) plans, including investment vehicles with exposure to crypto
▪The U.S. Department of Labor released a proposed rule that would give 401(k) fiduciaries a safe harbor when considering alternative investments, including funds that invest in cryptocurrencies and other digital assets

Current State of Alternative Investments in Retirement Plans

▪Americans held roughly $10.1 trillion in 401(k) plans as of the end of 2025
▪Just 0.1% of defined contribution plan assets were allocated to alternative investments last year
▪The broader U.S. defined contribution market totaled $14.2 trillion as of the end of 2025, according to data from the Investment Company Institute
▪Only 4% of defined contribution plans offered alternative investments last year
▪The U.S. Department of Labor estimates the participant-directed retirement plan market at $8.8 trillion across roughly 721,000 plans

Expert Analysis on Implementation Challenges and Market Impact

▪Joshua Chu of the Hong Kong Web3 Association stated that the U.S. Department of Labor's proposed rule places digital assets on the same playing field as other alternative investments
▪Joshua Chu stated that fiduciaries would need to build daily pricing, liquidity, and risk controls for crypto inside 401(k) wrappers before any of it reaches a retiree's account

Perspective of Hong Kong Web3 Association

▪The Hong Kong Web3 Association asserts the proposed rule could position U.S. retirees ahead of most Asian savers in accessing regulated crypto exposure
▪The Hong Kong Web3 Association views the U.S. Department of Labor's proposed rule as placing digital assets on equal footing with other alternative investments
▪The Hong Kong Web3 Association believes fiduciaries must build daily pricing, liquidity, and risk controls for crypto before it reaches retirees' 401(k) accounts

Perspective of Biden administration

▪The Biden administration issued guidance urging 401(k) fiduciaries to exercise extreme care before adding cryptocurrency to retirement plan menus

Perspective of Trump administration

▪The Trump administration rescinded Biden-era guidance on crypto in 401(k) plans in May, viewing it as excessively restrictive
▪President Donald Trump issued an executive order in August directing the expansion of access to alternative assets including crypto in 401(k) plans