White House advances plan to bring crypto and alternative assets to 401(k)

The White House Office of Information and Regulatory Affairs has completed its review of a Department of Labor (DOL) proposal that would permit approximately $12 trillion in 401(k) assets to be allocated to alternative investments, including cryptocurrency and private equity. This initiative stems from a 2025 executive order by President Trump aimed at reevaluating restrictions on alternative assets within retirement plans governed by ERISA. The proposal seeks to address concerns about fiduciary liability for plan sponsors adding volatile assets, offering legal protection for employers who conduct appropriate due diligence and disclosure. However, surveys indicate limited appetite among retirement investors for such options, with nearly half opposing the proposal and the majority unlikely to allocate funds to alternatives. This represents a reversal from the prior administration’s discouragement of digital asset options, and the DOL will now publish the rule for public comment before potential finalization and possible legal challenges.

(Source：Crypto Briefing)