US 401(k) proposal leaves door open to altcoins, but hurdles remain
A Labor Department proposal to ease offering alternative investments in 401(k) plans has reached White House review. It does not name eligible cryptocurrencies or set a market-cap threshold, but directs plan managers to assess performance, fees, liquidity, valuation, benchmarks and complexity. Experts expect Bitcoin and Ether to be likelier early options; smaller tokens may struggle to demonstrate sufficient history, liquidity and reliable pricing, though they are not expressly excluded. ETFs and managed funds are expected to precede direct holdings because they fit existing custody and recordkeeping systems. Adoption may be gradual, with legal uncertainty, potential reversals by future administrations and unresolved fiduciary liability posing further obstacles.
