White House Clears DOL Proposal for Crypto in 401(k)s

The White House has cleared a key regulatory hurdle for a Department of Labor proposal that could permit cryptocurrency and other alternative assets in the nation's 401(k) retirement plans, potentially opening a multitrillion-dollar market to digital investments.

The Office of Information and Regulatory Affairs completed its review of the proposal on March 24, classifying it as economically significant due to its anticipated broad impact on the economy. The Department of Labor now plans to publish the rule, titled "Fiduciary Duties in Selecting Designated Investment Alternatives," in the coming weeks for a standard 60-day public comment period. This step would allow revisions before a final rule is issued, though no specific deadline exists for completion.

The proposal seeks to amend guidance under the Employee Retirement Income Security Act, which governs fiduciary responsibilities for workplace retirement plans. It would clarify how plan sponsors and fiduciaries can evaluate and include alternative investments, such as cryptocurrencies, private equity, and real estate, without automatically facing liability for underperformance or excessive risks. Officials emphasized that any...