Trump administration moves closer to allowing crypto in 401(k) plans

what happened

According to The Block, a proposed rule that would let 401(k) retirement accounts hold alternative assets, including cryptocurrencies, has been sent to the White House for review. On Thursday the Department of Labor submitted the draft to the Office of Information and Regulatory Affairs (OIRA), a unit within the Office of Management and Budget that checks federal regulations before they are published.

The draft builds on an executive order from President Donald Trump directing the department to make room for alternative assets in retirement plans. The department had already issued an initial rule and withdrawn earlier guidance that discouraged plan managers from considering crypto. Senators Bernie Sanders and Elizabeth Warren urged the department to scrap the plan, warning that volatile assets such as crypto could expose investors to risk. In its filing, the department said it was still weighing the costs.

why it matters

For markets this is a review stage, not a final decision. If adopted, the rule would give retirement accounts access to crypto assets, which could over time widen the pool of institutional buyers. The timing and final wording remain unclear.

market impact

Crypto market: possible future capital inflows from retirement accounts, but no decision has been made yet

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