The U.S. Department of Labor proposed a landmark rule on Monday that would make it significantly easier for 401(k) plan managers to include cryptocurrencies, private equity, and real estate as designated investment alternatives.

The proposed regulation follows a Trump executive order from August 2025 that directed the Labor Department and the SEC to expand access to alternative assets in retirement plans. The rule establishes a set of process-based safe harbors for plan fiduciaries selecting these investments — requiring them to objectively evaluate performance, fees, liquidity, and valuation before adding alternatives to their lineups.

What Changes

Until now, most 401(k) plans stuck almost entirely to stocks and bonds. A 2022 Biden-era guidance had urged fiduciaries to exercise "extreme care" before adding crypto — that guidance was rescinded last year. This new proposal formalizes the path forward, giving plan managers clear compliance steps for including digital assets without fear of breaching their fiduciary duty.

"This proposed rule will show how plans can consider products that better reflect the investment landscape as it exists today," said Labor Secretary Lori Chavez-DeRemer.

What's at Stake

U.S. 401(k) plans hold roughly $12 trillion in retirement savings across more than 90 million participants. Even a 1% allocation shift into crypto across large plans would represent hundreds of billions of dollars in new demand for digital assets.

Critics, including Senator Elizabeth Warren, argue the timing is poor given recent volatility in crypto and private equity markets. The proposal now enters a public comment period before any final rule takes effect.