A prospective regulation that would grant access to alternative investments, such as cryptocurrencies, within 401(k) retirement portfolios has reached the White House for review.
On Thursday, the Department of Labor submitted a proposal to the White House’s Office of Information and Regulatory Affairs (OIRA), an agency part of the Office of Management and Budget tasked with examining federal rules ahead of release, to advance President Donald Trump‘s executive directive instructing the agency to facilitate the incorporation of alternative assets into 401(k) portfolios.
"Such clarification must aim to identify the criteria that fiduciaries should use to prudently balance potentially higher expenses against the objectives of seeking greater long-term net returns and broader diversification of investments," the DOL stated in its submission.
This development follows months after the DOL introduced its preliminary rule detailing measures that 401(k) plan administrators ought to take when weighing the addition of alternative holdings like private equity and digital assets to their investment portfolios. Previously, Trump had instructed the DOL via his executive order.
Furthermore, the DOL previously withdrew advice deterring retirement managers from treating cryptocurrency as a viable investment alternative within 401(k) portfolios, following earlier warnings issued by the department during the Biden Administration regarding digital assets in such retirement accounts.
The initiative to permit digital currencies in 401(k) portfolios has drawn parliamentary attention. Earlier in the year, Senators Elizabeth Warren and Bernie Sanders urged the DOL to abandon the measure, arguing that it would expose savers to unstable instruments, including cryptocurrency.
Within the Thursday filing, regarding expenses and advantages, the DOL noted that it was actively evaluating the costs.
Originally published at https://www.theblock.co/news/regulation/2026-11-06-trump-administration-moves-closer-allowing-crypto-401k-retirement-plans-435939.
