Labor Department Rule Could Open 401(k)s to Trillions in Crypto
The Labor Department proposed a rule on Monday that would instruct regulators to broaden access to digital assets within retirement portfolios, a change driven by an executive order issued by President Donald Trump. If finalized, the rule would clarify conditions under which plan sponsors, fiduciaries, and recordkeepers can offer crypto and tokenized assets in 401(k)s and other ERISA-governed plans.
Market participants say the proposal could free up trillions in retirement savings to flow into digital-asset markets, prompting faster development of custody solutions, compliance frameworks, and retirement-friendly crypto products. Supporters see increased diversification for savers; opponents flag volatility and custody risk, so the proposal signals that fiduciary safeguards and clear custody standards will be central to implementation. The rule enters a public comment period, and timing to a final rule remains uncertain, but the move marks a major step toward mainstreaming crypto in retirement investing.