U.S. Labor Department Proposes Rule That Could Let 401(k) Plans Add Digital Assets Such as XRP and Bitcoin
A new proposal from the U.S. Department of Labor (DOL) could pave the way for 401(k) retirement plans to include alternative investments, including digital assets such as XRP and Bitcoin.
Crypto commentator Diana flagged the filing, arguing it could open access to trillions of dollars held in U.S. retirement accounts and potentially create a new source of inflows for digital asset markets.
The proposal is part of a broader regulatory shift tied to an executive order from President Donald Trump encouraging regulators to widen access to alternative investments in retirement accounts. The DOL's framework lays out how plan fiduciaries could assess alternative assets responsibly, including cryptocurrencies, private equity and real estate.
Labor Secretary Lori ChavezDeRemer said the approach is intended to reflect current market conditions, adding that investment menus should evolve alongside the financial system. The rulemaking includes a 60-day public comment period. Regulators could finalize the rule later in 2026.
Because the U.S. 401(k) system holds trillions of dollars, even modest allocations to digital assets could translate into meaningful inflows. The proposal would also permit exposure to assets not traded on public exchanges, including private-market funds alongside digital tokens, potentially influencing long-term portfolio construction.
Regulators had previously urged caution about adding cryptocurrencies to retirement plans, but that guidance was withdrawn last year, signaling a shift that set the stage for the current proposal. Critics have raised concerns. Senator Elizabeth Warren pointed to risks tied to crypto and private credit markets and warned volatility could threaten retirement savings.
Fiduciaries would still be required to evaluate risk, liquidity and suitability before adding any alternative assets. The proposal expands potential access to digital assets while increasing plan managers' responsibilities, and its outcome could shape capital flows across financial markets.
