The U.S. Department of Labor has submitted its final rule on alternative investments in retirement plans to the White House for review, moving closer to a framework that could make it easier for employers to include crypto exposure in 401(k) accounts.
The Office of Information and Regulatory Affairs received the final rule on Nov. 5 and lists its review as pending. The measure is titled “Fiduciary Duties In Selecting Designated Investment Alternatives,” was submitted by the Labor Department's Employee Benefits Security Administration under rule identifier 1210-AC38, and is classified as economically significant.
The submission follows the department's March 30 proposal, which outlines six factors fiduciaries may consider when selecting investment options, including funds holding private equity, real estate and digital assets. The proposed framework creates a safe harbor concerning the duty of prudence under the Employee Retirement Income Security Act. Deputy Labor Secretary Keith Sonderling said the proposal “refrains from saying that any asset class is any better or worse than other investment types.”
The six factors cover performance, fees, liquidity, valuation, performance benchmarks and complexity. Under the framework, fiduciaries compare similar investments, assess expected returns after fees, and evaluate whether liquidity supports participant needs such as withdrawals, job departures, hardship events, reallocations and plan loans. The department does not require choosing the cheapest product if higher expenses are supported by expected returns or other benefits.
According to Investment Company Institute data, Americans held $10.8 trillion in 401(k) plans as of June 30, 2026. Sweep's Nov. 6 scenario assumes a 2% allocation of that asset base into crypto, producing $216 billion in potential inflows, though no timetable or commitments from employers or participants are included. ICI data also show mutual funds managed $6.2 trillion, or 58%, of 401(k) assets, with equity funds accounting for $3.7 trillion and hybrid funds including target-date funds holding $1.7 trillion.
