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U.S. Labor Department Proposes ERISA Rule on 401(k) Funds With Digital Assets

U.S. Labor Department Proposes ERISA Rule on 401(k) Funds With Digital Assets

According to the Labor Department, the proposal creates a process-based safe harbor for 401(k) fiduciaries considering crypto and other alternative assets, replacing earlier uncertainty around retirement-plan investment options.

BTC

Fact Check
The statement is accurately supported by multiple independent reports and official regulatory tracking. The U.S. Department of Labor's EBSA indeed proposed the 'Fiduciary Duties in Selecting Designated Investment Alternatives' rule on March 30, 2026. The rule specifically addresses the inclusion of alternative assets, including digital assets, in 401(k) plans and outlines a safe harbor based on six evaluation factors (performance, fees, liquidity, valuation, benchmarking, and complexity), as detailed in reports from Pensions & Investments and PANews.
Summary

The U.S. Labor Department published a proposed rule that would give 401(k) plan fiduciaries a structured process for evaluating alternative investments, including crypto assets such as Bitcoin, for defined contribution plans. Through the Employee Benefits Security Administration, the department described the measure as a historic, asset-neutral framework centered on fiduciary process rather than approval of any specific investment type. The proposal includes safe-harbor procedures requiring managers to assess factors such as expected performance, fees, liquidity, valuation methods, appropriate benchmarks, and the complexity of crypto assets. Officials said the rule follows President Trump’s executive order on expanding access to alternative assets in 401(k) plans and is intended to replace uncertainty created by the Biden administration’s 2022 compliance guidance, which had discouraged crypto options. Treasury Secretary Scott Bessent and SEC Chairman Paul Atkins backed the proposal, while the rule would still need to be finalized before it takes effect.

Terms & Concepts
  • ERISA: The Employee Retirement Income Security Act, the U.S. law that sets standards for private-sector retirement plans and fiduciary duties.
  • 401(k): A U.S. employer-sponsored defined contribution retirement plan in which workers choose from investment options offered by the plan.
  • Bitcoin: The largest cryptocurrency by market value, cited in the proposal as an example of a crypto asset that could be considered for retirement-plan menus.