US Labor Department moves to allow crypto and other alternative assets in 401(k) plans

The US Labor Department has formally proposed a rule that would allow 401(k) retirement plans to offer alternative assets—including cryptocurrency, private equity and private credit—to more than 90 million Americans. Labor Secretary ChavezDeRemer said retirement plans are not barred from any investment category “per se”, provided plan managers follow prudent fiduciary standards. The proposal aligns with former President Trump’s executive order issued last summer aimed at opening retirement plans to alternative investments. Markets reacted quickly: Bitcoin ($BTC) rose about 1% to around $67,000, while Ether ($ETH) gained more than 2%. Shares of Apollo, Blackstone and KKR jumped 45%. BlackRock’s CFO described the move as an effort to “expand access to investments historically out of reach.” The proposal now enters a 60-day public comment period.