The US Department of Labor has advanced a proposed rule that could make it easier for 401(k) retirement plans to include alternative assets such as cryptocurrency, private equity, and real estate. The final proposal was submitted to the White House Office of Information and Regulatory Affairs, a division of the Office of Management and Budget, on November 5, 2026, for final regulatory review.
The proposal follows an executive order from President Donald Trump directing the Labor Department to establish a path for alternative assets in employer-sponsored retirement accounts. It introduces a six-factor assessment framework for fiduciaries: performance, fees, liquidity, valuation, benchmarks, and investment complexity. Under the plan, employers that conduct documented investment reviews could receive stronger legal protections when considering digital assets and other alternatives. The rule would not force retirement plan managers to include crypto but would create a clearer compliance process for those evaluating such options.
The move reverses earlier Biden-era guidance that discouraged retirement managers from considering cryptocurrency in 401(k) plans. The Department of Labor had previously unveiled an initial version of the rule months ago. The proposal has faced opposition on Capitol Hill, with Senators Bernie Sanders and Elizabeth Warren urging the DOL to scrap the rule, arguing it would expose investors to volatile assets. The Labor Department said it is still evaluating the costs and benefits of the change.
