TLDR
- The U.S. Department of Labor proposed a rule to allow 401(k) plans to include crypto, private equity, and real estate.
- The proposal follows a Trump executive order from August directing regulators to expand retirement investment options.
- U.S. 401(k) plans hold trillions in savings — even a 1% shift into crypto could move billions into digital assets.
- Morgan Stanley recommends a 2–4% crypto allocation; BlackRock suggests 1–2% for diversified portfolios.
- Senator Elizabeth Warren criticized the move, warning it exposes workers to risky assets.
The U.S. Department of Labor proposed a rule on Monday that could open trillions of dollars in retirement savings to cryptocurrencies and other alternative investments. The proposal, published in the Federal Register, is titled “Fiduciary Duties In Selecting Designated Investment Alternatives.”
🇺🇸 UPDATE: The White House clears review of a proposed 401(k) rule by the U.S. Department of Labor that could open the door for crypto investments in retirement plans. pic.twitter.com/MGihJ0ulBm
— The Crypto Times (@CryptoTimes_io) March 26, 2026
The rule would change how 401(k) plan managers can invest workers’ savings. Currently, most retirement plans stick to stocks and bonds. Under the new proposal, plan providers could add a broader mix of assets, including digital tokens and private-market funds.
Labor Secretary Lori Chavez-DeRemer said the rule “will show how plans can consider products that better reflect the investment landscape as it exists today.” She added that greater diversity in investment options would “drive innovation and result in a major win for American workers, retirees, and their families.”
The proposal is a direct response to an executive order signed by President Donald Trump in August. That order directed the Labor Department, the Securities and Exchange Commission, and the Treasury Department to expand 401(k) investment options and revise related regulations.
SEC Chair Paul Atkins said on Monday that broadening investors’ access to “well-diversified, long-term investments that harness innovation and economic growth” is a critical priority for retirement planning.
The proposal defines digital assets as “a new form of investing that includes a wide variety of assets that can be stored and transmitted digitally, including cryptocurrencies such as bitcoin and other tokens.”
This is not the first step in this direction. Last May, the Labor Department removed earlier guidance that told retirement plan managers to use “extreme care” before adding crypto. Trump’s executive order went further, calling for digital assets to be treated on the same level as other investment options.
What This Could Mean for Crypto Markets
U.S. 401(k) plans hold trillions of dollars. Even a small allocation to digital assets could send large amounts of new capital into the crypto market. If a large employer plan allocated just 1% of its portfolio to bitcoin, that could translate to millions of dollars moving into crypto funds.
Major Wall Street firms have already begun preparing for this shift. Morgan Stanley told its 16,000 financial advisers in October — who manage $6.2 trillion in client assets — that they can recommend crypto to clients. The bank suggests a 2% to 4% crypto allocation. BlackRock, the world’s largest asset manager, recommends a more conservative 1% to 2% for diversified portfolios.
Critics Warn of Worker Risk
Not everyone supports the change. Senator Elizabeth Warren called it poorly timed, pointing to falling private equity returns at 16-year lows and continued crypto market volatility.
“President Trump has decided now is the time to stick all of these risky assets into Americans’ 401(k)s,” Warren said in a statement. She warned the rule could expose workers to losses while benefiting large financial firms.
The proposal is now open for public comment before any final rule is issued.
