The U.S. Department of Labor has put forward a proposed rule to expand the range of investment choices available in 401(k) retirement plans to include cryptocurrencies and other digital assets. The announcement moves forward implementation of an August presidential executive order directing federal agencies to broaden retirement-plan investment options.
A pre-publication notice appearing on the Federal Register, titled “Fiduciary Duties In Selecting Designated Investment Alternatives,” outlines considerations for plan fiduciaries when evaluating the addition of crypto and alternative investments. The draft characterizes digital assets as a new investment category that encompasses a variety of assets held and transmitted electronically, including cryptocurrencies such as bitcoin and other tokens.
If adopted, the rule could redirect substantial retirement capital into the digital-asset market, increasing mainstream acceptance and institutional involvement. Labor Secretary Lori Chavez-DeRemer said the proposal will help plans consider products that better reflect today’s investment landscape, and that a broader mix of options could spur innovation and benefit American workers, retirees and families.
The proposal follows direction in the president’s executive order that asked the Labor Department, the Securities and Exchange Commission and the Treasury to expand 401(k) choices and review related regulations. SEC Chair Paul Atkins emphasized that widening access to diversified, long-term investments that capture innovation and growth is a key priority for effective retirement planning.
Major financial institutions have already signaled openness to small crypto allocations for certain investors. Morgan Stanley told its roughly 16,000 financial advisers—who oversee about $6.2 trillion in client assets—that they may recommend crypto for some clients, suggesting conservative allocations around 2%–4% in suitable portfolios. BlackRock has recommended even smaller allocations, on the order of 1%–2%, for diversified portfolios.
Observers note both potential benefits and significant risks in adding bitcoin and similar assets to retirement accounts, including volatility, custody and regulatory uncertainty. This report is intended to provide timely, accurate information in line with editorial standards; readers are encouraged to verify details independently.