The U.S. Department of Labor introduced a proposed regulation that would allow alternative assets, including cryptocurrencies, to be included in 401(k) retirement plans.
The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) presented the new rule, aimed at reducing regulatory barriers and risks for retirement plan managers.
The initiative establishes a framework for selecting alternative investments for 401(k) plans and introduces so-called “safe harbors” for fiduciaries, a mechanism that reduces the risk of litigation when established procedures are properly followed. The proposal implements a U.S. presidential directive to expand access to alternative assets for private investors.
According to the agency, the system of retirement and welfare plans regulated by EBSA covers more than 156 million people and includes around 801,000 private retirement programs. Total assets under management are estimated at $13.8 trillion.
Under the proposal, retirement plan managers must conduct a comprehensive evaluation of investment instruments based on key criteria:
- returns;
- fee levels;
- liquidity;
- valuation methods;
- benchmark alignment;
- product complexity.
The regulator emphasizes that it doesn’t favor any particular asset class, reinforcing a principle of neutrality and a process-based approach as provided under ERISA.
Formally, the inclusion of alternative assets in defined contribution plans was already permitted, but in practice such instruments were rarely used. One reason was the stricter stance taken by regulators in 2022, when Joe Biden’s administration issued guidance effectively cautioning against adding crypto to 401(k) plans. The new proposal reverses that approach and returns the focus to independent risk assessment by plan managers.
The initiative is supported by the U.S. Department of the Treasury and the Securities and Exchange Commission (SEC).
According to SEC Chair Paul Atkins, the initiative is aimed at expanding investment opportunities and increasing diversification in retirement portfolios.
Donald Trump instructed the SEC and the Department of Labor back in the summer of 2025 to develop a regulatory framework allowing cryptocurrencies, private equity, real estate, and other alternative assets to be included in 401(k) retirement accounts.
