U.S. Labor Department Unveils Draft Rule That Could Permit Bitcoin, Altcoins in 401(k) Plans

U.S. regulators have taken a notable step with potential implications for crypto markets. The Department of Labor released a draft rule that could allow 401(k) retirement plans to include alternative assets such as Bitcoin, broadening investment choices for more than 90 million Americans. Issued by the State’s Employees’ Social Security Administration, the proposal lays out the procedures plan managers would need to follow when offering alternative assets. It also provides "safe haven"-style guidance on how those assets should be selected. The draft follows a presidential executive order signed by Donald Trump titled "Democratizing Access to Alternative Assets for 401(k) Investors." Labor Secretary Lori ChavezDeRemer said the goal is to bring the retirement system in line with today’s investment landscape, arguing that a broader menu of options can support innovation and benefit both workers and retirees. Treasury Secretary Scott Bessent said the approach seeks to protect retirement savings while expanding available investments. SEC Chair Paul S. Atkins added that the initiative could improve opportunities for long-term investing and wealth creation. Under the proposal, 401(k) plan managers would be required to conduct an objective, comprehensive review of factors including performance, fees, liquidity, valuation methods, and complexity when determining which options to offer. Officials emphasized that the framework does not favor one asset class over another and is designed as a process-based standard. The draft also marks a shift from the prior policy stance. Officials noted that 2022 guidance issued under the Joe Biden administration, which warned against adding crypto assets to 401(k) plans, has been withdrawn, and that the new proposal reverses that restrictive approach. The rule remains in draft form. If adopted, it could open the door to wider inclusion of Bitcoin and other alternative assets in U.S. retirement portfolios. *This is not investment advice.