The U.S. Department of Labor has introduced a proposed rule that could significantly expand investment options within 401(k) retirement plans, potentially opening the door to cryptocurrency and other alternative assets.
According to the Employee Benefits Security Administration, the proposal aims to reduce regulatory barriers and clarify how plan fiduciaries can evaluate and include alternative investments.
Labor Secretary Lori Chavez-DeRemer said the rule is designed to modernize retirement investing and reflect today’s evolving financial landscape.
“This proposed rule will show how plans can consider products that better reflect the investment landscape as it exists today. This greater diversity will drive innovation and result in a major win for American workers, retirees, and their families.”
The proposed regulation outlines a process-based framework requiring fiduciaries to evaluate investments based on factors such as performance, fees, liquidity, valuation, and complexity. It also establishes “safe harbor” guidelines intended to reduce litigation risk for plan managers who follow prudent procedures.
Officials say the rule restores a neutral stance toward asset selection, reversing prior guidance that discouraged the inclusion of digital assets.
Treasury Secretary Scott Bessent emphasized that the proposal is an initial step toward expanding retirement investment access while maintaining safeguards.
The U.S. Securities and Exchange Commission also contributed to the rulemaking process, with Chairman Paul S. Atkins signaling support for expanding long-term investment opportunities.
If finalized, the rule could reshape how retirement plans approach diversification, giving millions of Americans potential exposure to cryptocurrencies and other alternative assets within tax-advantaged accounts.
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