White House Clears Path for Proposed 401(k) Rule to Open Door to Crypto

The White House's Office of Information and Regulatory Affairs (OIRA) has finished its review of a Labor Department proposal that could allow a portion of the roughly $12 trillion held in 401(k) plans to be invested in alternative assets such as cryptocurrency and private equity, according to a recent status update. OIRA completed the review on March 24, after the proposal entered the process on January 13. The clearance allows the Department of Labor's Employee Benefits Security Administration (EBSA) — the unit that enforces fiduciary standards for workplace retirement plans — to publish the proposed rule for public comment in the coming weeks. The proposal stems from an executive order signed by President Donald Trump on August 7, 2025, which instructed federal agencies to revisit long-standing limits on alternative assets in plans governed by the Employee Retirement Income Security Act of 1974 (ERISA). The order gave EBSA 180 days to develop new guidance, setting a deadline that technically landed on February 3, though publication was pushed back while the rule went through White House review. At the center of the rulemaking is a question that has long deterred plan sponsors: whether offering volatile or illiquid investments in a retirement lineup exposes employers to unacceptable fiduciary liability. Under ERISA, fiduciaries must act solely in the interest of participants and can face lawsuits for investments that lag benchmarks or carry excessive fees. EBSA's proposal is expected to clarify that adding alternative options — if paired with appropriate due diligence and disclosures — would not automatically violate fiduciary duties. Even if employers gain clearer legal footing, demand from retirement savers appears limited. A survey of more than 1,000 Boldin subscribers shows skepticism toward allowing cryptocurrency, private equity, and real estate in 401(k) plans. Respondents were mainly ages 56–65 (63%) and 45–55 (22%). Nearly half (48%) oppose the proposal, compared with 34% in support. Four in five (80%) say they are unlikely to allocate any of their 401(k) to alternatives; 78% would either avoid them entirely or cap exposure at 5% or less. While more than 80% report familiarity with alternative investments, 85% say most retirement savers do not understand the risks. In the U.K., Aviva found rising interest in crypto among adults: 27% are open to using it in retirement planning, and 23% would consider withdrawing part or all of their pension to invest. Respondents cited higher returns, innovation, and diversification, while also highlighting concerns such as potential loss of pension benefits, security risks, and limited regulatory protections. The shift would mark a reversal from the prior administration, when the Labor Department issued compliance guidance that effectively discouraged plan fiduciaries from offering digital-asset options, pointing to volatility, valuation issues, and immature custody infrastructure. Trump's August 2025 order explicitly reversed that stance, framing expanded access as a matter of economic freedom and retirement security, and directing the Labor Department, Treasury Department, and the Securities and Exchange Commission to coordinate on removing barriers. Next, the Labor Department must publish the proposal in the Federal Register, starting a public comment period that will draw input from industry groups, consumer advocates, and members of Congress. A final rule could take months, and legal challenges could further delay implementation.