New US Rule Seeks to Open $8T Retirement Market to Crypto
The U.S. Department of Labor has proposed a rule granting 401(k) fiduciaries a safe harbor for considering alternative investments, including cryptocurrency funds, if they document a rigorous evaluation process covering performance, fees, liquidity, valuation, benchmarking, and complexity. This proposal aims to expand access to alternative assets in retirement plans, following a Trump administration directive and the Labor Department’s recent reversal of stricter Biden-era crypto guidance. As of 2025, Americans hold about $10.1 trillion in 401(k) plans, but only 4% offer alternatives and just 0.1% of assets flow into them. The proposed rule would place digital assets on equal footing with other alternatives, provided fiduciaries implement strict risk controls. While this could increase regulated crypto exposure among U.S. retirees, the practical question remains whether savers will actually invest. Industry experts note that rule changes empowering individual choice are welcome, but emphasize the need for strong oversight and controls before crypto becomes widely available in retirement accounts.
