The draft document defined digital assets as "a new form of investing that includes a wide variety of assets that can be stored and transmitted digitally,
Crypto News
The U.S. Department of Labor proposed a rule change on Monday that would expand investment options in 401(k) retirement plans to include crypto and other alternative assets. The proposal appeared in the Federal Register under the title "Fiduciary Duties In Selecting Designated Investment Alternatives," with a pre-published version outlining the factors retirement plan managers should weigh when incorporating digital assets into client portfolios.
The draft document defined digital assets as "a new form of investing that includes a wide variety of assets that can be stored and transmitted digitally, including cryptocurrencies such as Bitcoin and other tokens." It stops short of mandating crypto exposure, focusing instead on how fiduciaries should evaluate such options.
Labor Secretary Lori Chavez-DeRemer said the proposed rule "will show how plans can consider products that better reflect the investment landscape as it exists today." She added that broader investment diversity would drive innovation and benefit American workers, retirees, and their families.
The proposal advances a directive from President Donald Trump's executive order, which instructed the Labor Department, the Securities and Exchange Commission, and the Treasury Department to expand 401(k) investment options and revise associated regulations. SEC Chair Paul Atkins described broadening access to well-diversified, long-term investments as a "critical priority for effective retirement planning."
The move could redirect a portion of the trillions of dollars held in U.S. retirement accounts toward the digital asset sector, further establishing crypto as a recognized investment category alongside equities and bonds. The exact scale of that shift would depend on how retirement managers interpret the fiduciary guidance and what allocations they consider prudent.
Wall Street's largest firms have already staked out positions on appropriate crypto exposure. Morgan Stanley, which manages $6.2 trillion in client assets through its 16,000 financial advisers, has authorized those advisers to recommend crypto investments and separately suggested a 2% to 4% allocation for crypto portfolios.
BlackRock, the world's largest assetmanager, has taken a more conservative stance, recommending a 1% to 2% crypto allocation for diversified portfolios. The Labor Department's proposal is subject to a public comment period before any final rule takes effect.
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