America's Most Conservative Money Is Eyeing Cryptocurrency
The U.S. Department of Labor has proposed a new rule that would allow 401(k) retirement plans, which hold over $10 trillion in assets, to include digital assets and other alternative investments. This marks a significant reversal from the Biden administration's 2022 guidance, which urged extreme caution regarding crypto in retirement plans. The Trump administration withdrew that guidance in 2025 and issued an executive order facilitating access to alternative assets, including crypto, through actively managed investment vehicles.
The proposed rule establishes a "safe harbor" framework to protect plan sponsors from lawsuits if they follow specific due diligence steps. These include assessing performance, fees, liquidity, valuation, benchmarking, and complexity. The rule does not cover self-directed brokerage accounts; instead, crypto exposure would likely come through professionally managed funds within the plan's investment menu, such as target-date funds.
Several states, including Indiana and Texas, are also moving to allow crypto options in public retirement systems. The rule is now open for public comment, with final approval expected by late 2026. This shift could channel significant long-term capital into crypto and further legitimize digital assets within the mainstream financial system.
marsbit03/31 11:10
