US Labor Department proposes opening 401(k) plans to crypto to implement Trump order

The U.S. Department of Labor (DOL) has issued a proposed rule that would permit 401(k) retirement accounts to incorporate alternative assets, such as digital assets (including cryptocurrencies), private equity, and real estate. This action is intended to implement an executive order signed by President Trump in August, which directed the DOL to facilitate the inclusion of these assets in retirement plans. The draft rule specifies the steps plan managers must take when considering these alternatives, requiring them to assess factors like performance, fees, liquidity, and complexity to ensure a prudent process. Treasury Secretary Scott Bessent stated the rule aims to broaden retirement options safely, while Deputy Secretary Keith Sonderling emphasized that the department is moving away from picking investments. This potential change could open a substantial market, given that Americans held about $10.1 trillion in 401(k)s at the end of 2025. However, Senator Elizabeth Warren criticized the proposal, warning it could expose retirement savings to risky assets amid market volatility in areas like private equity and crypto. The DOL will accept public comments for 60 days following the proposal's publication.

(Source：The Block)