The Department of Labor’s (DOL) proposed rule to allow crypto investment options for 401(k) retirement plans has cleared a White House regulatory review, bringing digital assets closer to the $10 trillion US market.
White House Clears DOL’s Proposed 401(k) Rule
The White House Office of Information and Regulatory Affairs (OIRA) has finished reviewing a proposed rule submitted by the Department of Labor that could pave the way for crypto exposure in 401(k) retirement plans.
Notably, the Department of Labor withdrew guidance in 2022 that discouraged fiduciaries from including crypto investments in 401(k) plans. The guidance followed a Biden-era executive order (EO) that required the government to assess the risks and benefits of digital assets.
As reported by Bitcoinist, it directed plan fiduciaries under the Employee Retirement Security Act (ERISA) to exercise extreme caution before including crypto assets in their investment menus, asserting that the early stage of the digital asset industry could pose significant risks.
The DOL’s proposal, called “Assurance Duties in Selecting Alternative Investment Methods,” would amend fiduciary guidance for plans governed by the Employee Retirement Income Security Act (ERISA).
White House concludes regulatory review of DOL's proposed rule. Source: OIRA
This may allow plan sponsors to include private equity and private equity as alternative investment options. The federal agency marked the move as “reformative” and designated the proposal as “economically significant” legislation in its review, which was completed on March 24.
According to the OIRA website, this proposed rule does not have an official deadline for completion. However, the DOL is expected to formally release the proposal in the coming weeks, which will allow for the usual 60-day public comment period. After this, it will be reviewed, and a final rule will be issued.
US Push to Allow Crypto in Retirement Plans
The proposal follows an executive order signed by President Donald Trump last August that seeks to allow more private equity, real estate, cryptocurrency, and other assets in 401(k) retirement accounts.
The order directs the DOL, the Securities and Exchange Commission (SEC), the secretary of the Treasury, and other government agencies to reduce regulatory barriers that prevent investment in certain assets in their defined benefit retirement plans and to explore ways to facilitate access to these assets.
In January, the CIO of Bitwise, Matt Hougan, discussed the possibility that 2026 will be the year investors can own Bitcoin and other cryptocurrencies in 401 (k) retirement plans, explaining that the inclusion of digital assets is very common in individual retirement accounts (IRAs).
The executive said providers have been slow to adapt, but acknowledged that the Trump administration’s pro-crypto stance, which has effectively lifted crypto bans from 401(k)s, has opened the door to a multibillion-dollar market.
Recently, some US states have mandated embedding crypto in their public finance systems. In February, Indiana lawmakers advanced House Bill 1042 (HB 1042), also known as the Bitcoin Bill of Rights, which requires several state-run programs, including retirement plans for teachers, public employees, and legislators, to offer self-directed brokerage accounts with at least one digital asset investment option.
Many American lawmakers have supported the Trump Administration’s plans. In September, nine House members requested that SEC Chairman Paul Atkins provide immediate assistance in implementing the president’s executive order and work with the DOL to protect workers.
In addition, House of Representatives member Troy Downing introduced a bill to consolidate Trump’s order and give it “the force and effect of law.” The move is intended to ease investors’ access to Bitcoin and other assets within their 401(k) retirement plans.
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