Labor Department Rule Allowing Crypto in 401(k) Plans Sent to White House for Final Review
The Department of Labor's proposed rule on fiduciary duties in selecting investment options, which would cover crypto and other alternative assets, has reached the White House for final review. The rule would not require any plan to add digital assets, and fiduciaries remain under standard ERISA prudence requirements until a final rule is issued.
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What the Proposal Would Do
The Department of Labor's proposal, formally titled "Fiduciary Duties in Selecting Designated Investment Alternatives," sets out a process-based framework that plan fiduciaries would use to evaluate investment options. The factors named include performance, fees, liquidity, valuation requirements, benchmarks and complexity. Crypto and other alternative assets would be assessed under that same framework.
The rule does not mandate that any plan add digital assets. Its effect is to define the process a fiduciary would follow, which is the basis for the safe harbor described in coverage of the proposal.
Origins in the 2025 Executive Order
The rulemaking traces to Executive Order 14330, signed by President Trump on August 7, 2025. The order directed the DOL to revisit its guidance under the Employee Retirement Income Security Act (ERISA) within 180 days, and it specifically called for a fresh look at alternative investments in retirement accounts, naming digital assets alongside more traditional alternative asset classes.
The department had already begun to shift its position before the order. On May 28, 2025, it fully rescinded a 2022 warning that told fiduciaries to use "extreme care" before adding crypto options to 401(k) menus.
Current Status and Review Timeline
The proposed rule cleared interagency review at the White House Office of Information and Regulatory Affairs (OIRA) on March 24, 2026, and is now under final White House review. Coverage differs on how far along the process is. One outlet describes the rule as in its late stage with the door "noticeably closer to opening"; the other characterizes it as now sitting with the White House for a final look. Both agree that no final rule has been issued.
Until a final rule takes effect, fiduciaries remain under standard ERISA prudence requirements, the same duty of care that has always applied. Plan sponsors that want crypto exposure have generally used indirect routes, such as managed funds that hold digital assets, rather than holding the assets directly in plans.
Market Scale
The defined-contribution market in which the rule would operate is estimated at between $10 trillion and $14 trillion, covering roughly 715,000 401(k) plans. The sources cite these figures without a shared methodology, so the range should be read as an approximate industry estimate rather than a precise measurement.
Why It Matters
For Traders
A final White House clearance could open a new source of institutional demand for crypto, but the rule does not require any plan to add digital assets, so near-term flows are uncertain.
For Investors
Opening defined-contribution retirement plans to digital assets would be a structural shift in crypto's addressable investor base, with timing still dependent on final approval.
For Builders
Products designed for retirement plans will need to satisfy process-based fiduciary evaluation criteria covering fees, liquidity, valuation and complexity.
This article is for information only and is not financial advice. Read the full disclaimer.
