Retirement Retirement Planning

White House Clears Review of Rule That Could Allow Crypto in 401(k) Market

It's time for investors to pay attention.

By Catherine Collins , Edited by Kristy DeSmit

Updated April 6, 2026

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In 2025, the Trump administration asked the Secretary of Labor to consider adding assets such as cryptocurrency and private equity to 401(k) retirement plans. This is part of the administration's broader plan to reduce red tape and expand access.

In March 2026, the Department of Labor responded with a proposal to allow these investment alternatives in retirement plans. It's now the next stage of the process, a 60-day comment period where the public can weigh in. Here's what that means and what investors need to know.

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What are alternative investments, and why does it matter?

There are traditional investments that most investors are familiar with, like stocks, bonds, mutual funds, and ETFs. Then, there are alternative investments, such as private equity, that have historically been inaccessible to the average investor.

Allowing private equity investments in 401(k)s means that some investors can get access to the same opportunities that hedge fund clients have. However, these investments tend to be more complex and can be highly volatile.

Another type of alternative investment is cryptocurrency, which the Trump administration wants to include in 401(k)s as well. The Department of Labor responded to this request in March 2026.

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What the new Department of Labor proposal says

The Department of Labor issued a proposed rule allowing 401(k) plan advisors to consider including alternative investments under certain conditions.

For example, if a fiduciary follows a six-step process when recommending an investment, they may get safe-harbor protections against future litigation.

The public has 60 days to weigh in

As part of the judicial process, the public now has 60 days to comment on this proposed policy. Both proponents and detractors can weigh in on the pros and cons of allowing alternative assets to be included in 401(k) plans.

The Department of Labor uses this feedback to fine-tune the plan, such as adding more safeguards or changing specific terms in the policy language. This is an important part of the process that allows Americans to weigh in and shape the future of retirement accounts.

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Why some lawmakers and experts are against this plan

One of the most outspoken critics of allowing alternative assets in 401(k) plans is Senator Elizabeth Warren, who wrote a letter to the SEC explaining that American workers needed protections against volatile investments.

Some experts worry that workers will invest in these assets, hoping for larger returns without realizing the inherent risk. Many financial experts also have concerns about workers investing in private equity, since those assets are typically longer-term and more illiquid.

Why the Trump administration advocates for alternative investments

In President Trump's executive order, he explained that he wanted all Americans to have equal access to specific types of assets.

Making private equity more available to American workers means that these assets will no longer be reserved just for a small number of wealthy investors. Rather, any American worker who has access to a 401(k) plan with alternative assets can have the opportunity to own them.

What this means for American workers and their retirement

If this plan comes to fruition, it means that many American workers will have more options when it comes to choosing assets within their 401(k) plans. Some of these assets may offer higher returns than other types of investments, but they also come with more risks.

Investors will be responsible for carefully weighing their risk tolerance and deciding whether or not to pursue alternative investments as part of their overall retirement strategy. That means workplaces may need to place more of an emphasis on financial literacy and ensuring their employees understand how to responsibly handle new investment decisions.

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Where to get up-to-date 401(k) policy news

Following headlines in the news about 401(k) policy changes is a good way for employees to find out whether or not they may have access to alternative assets in their 401(k) plans. If workers are unsure whether or not to invest in specific assets in the future, consulting with a financial advisor can help ensure they balance risk with their retirement goals.

Employees should also open emails from their employers about their 401(k) plans and ask their human resources representative if they have any questions.

Bottom line

All workers dream of having a stress-free retirement someday, but unfortunately, many people are unprepared for retirement. The Trump administration has opened the door to including new types of assets in retirement plans to help democratize access.

However, many lawmakers are against this plan and worry employees will take unnecessary risks with their retirement funds. Ultimately, workers should consult a financial planner before choosing to purchase volatile investments within their retirement plans.

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