Retirement savers could gain broader exposure to alternative investments as federal regulators reconsider the rules governing 401(k) plan managers.
The White House has begun reviewing a US Department of Labor rule that could make it easier for employers to include cryptocurrency and other alternative assets in 401(k) retirement plans. Submitted on 5 November, the final rule covers investments such as private equity, real estate and digital assets. The review is listed by the Office of Information and Regulatory Affairs under identification number 1210-AC38.
The regulatory initiative builds on a March proposal intended to clarify the responsibilities of retirement plan fiduciaries when selecting alternative investments. It identifies six factors for evaluating investment options: performance, fees, liquidity, valuation, benchmarking and investment complexity. The proposed framework also establishes a process-based safe harbour under which fiduciaries could receive greater legal protection when making investment selection decisions, provided they follow the specified assessment process.
The review advances an executive order signed by President Donald Trump on 7 August 2025, which directed federal agencies to reconsider restrictions on alternative investments in retirement accounts. In May 2025, the Department of Labor also withdrew its 2022 guidance, which had urged fiduciaries to exercise extreme caution when considering cryptocurrency investments, reaffirming that existing federal retirement laws do not prohibit any specific category of investment.
However, the White House review does not automatically grant retirement savers access to cryptocurrency. Even if the final rule is adopted, employers and retirement plan administrators will retain responsibility for deciding which investment products to include in their plans. The rule must complete the review process before the Department of Labor publishes it and establishes its effective date.
Why does it matter?
The review reflects a broader reassessment of how retirement systems respond to the growing role of digital and alternative assets in financial markets. Its significance extends beyond cryptocurrency, as the outcome could influence how fiduciary standards evolve alongside investment products that increasingly combine traditional financial structures with emerging technologies. It also raises a longer-term question about how regulators can accommodate financial innovation while preserving the security and long-term interests of retirement savers.
