Labor Department proposes rule letting 401(k)s add crypto with safeguards

Labor proposes safe harbor for 401(k) crypto review. Plans get a clear process to evaluate alternatives like Bitcoin without endorsing any asset class. Source.

EBSA calls the proposal “historic.” It sets a process for fiduciaries in defined contribution plans. Department of Labor.

Managers must assess:
- Expected performance and fees
- Liquidity and valuation methods
- Appropriate benchmarks
- Asset complexity
Rule text.

The rule is asset-class neutral. It endorses process, not products. DOL.

It follows President Trump’s order on expanding 401(k) access to alternatives. The proposal translates that directive into practical guidance. DOL.

“The department’s days of picking winners and losers are over,” said Deputy Secretary Keith Sonderling. “Managers must evaluate any product by following a prudent process.” DOL.

Treasury and the SEC voiced support. Officials framed it as widening retirement options while protecting savers. DOL.

EBSA said 2022 guidance discouraged crypto in plans and diverged from ERISA. The new proposal aims to remove uncertainty with process-based protections. DOL.

If finalized, fiduciaries get a structured path to consider crypto and other alternatives, with safe-harbor guardrails. DOL.