Crypto 401(k) Rule Clears White House Review Ahead of Final Approval

A Department of Labor rule that would allow Americans to hold cryptocurrency in their 401(k) retirement plans has reached the White House for final review, marking the last regulatory step before the rule can be formally adopted. The proposal, classified as "economically significant," would amend fiduciary guidance under ERISA and give plan fiduciaries a process-based safe harbor when evaluating investment decisions involving crypto and other alternative assets.

The rule applies to the roughly 10 trillion dollar 401(k) market and, if finalized, would open retirement savings accounts to direct crypto exposure for the first time in a formal regulatory framework. The move builds on earlier Trump administration actions, including the Labor Department's 2025 rescission of Biden-era guidance that had urged employers to exercise "extreme care" before adding crypto to retirement plans. The new rule would go further by establishing a structured pathway rather than simply removing a warning.

Approval would have broad implications for retirement savers and crypto markets alike, as defined-contribution plans represent one of the largest pools of household savings in the United States. Plan fiduciaries would gain clearer legal cover for including digital assets, while critics have flagged the increased risk and volatility those assets could introduce into retirement portfolios.