If adopted, the rule would mark a shift in how retirement plans are built. For years, most 401(k)s have focused on stocks and bonds. The new approach would allow plan providers to add a broader mix of assets, including digital tokens and private-market funds that are not traded on public exchanges.
The move builds on earlier changes. Last May, the Labor Department rescinded prior guidance that urged fiduciaries to exercise “extreme care” before adding crypto to retirement plans. Trump’s executive order went further, calling for digital assets to be treated on par with other investment options.
Still, the proposal has drawn criticism from some lawmakers and financial advisors.
“As cracks emerge in the private credit market, private equity returns fall to 16-year lows, and crypto keeps tumbling, President Trump has decided now is the time to stick all of these risky assets into Americans’ 401(k)s,” Senator Elizabeth Warren said in a statement. She warned the rule could expose workers to losses while benefiting large financial firms.
The stakes for crypto could be large. U.S. 401(k) plans hold trillions of dollars in retirement savings, and even a small shift into digital assets could send new capital into the market. If a large plan with tens of thousands of workers were to allocate just 1% of its portfolio to bitcoin, that would translate into millions of dollars flowing into crypto funds or tokens.
coindesk.com
