401(k)s Get a Crypto Green Light for Review—But Altcoins May Need to Sit This One Out

The White House is reviewing a Labor Department rule that could make it easier for 401(k) retirement plans to offer cryptocurrencies and other alternative assets, with the proposal expected to receive final review before publication. The Labor Department submitted the final rule to the Office of Information and Regulatory Affairs on November 5, assigning it identification number 1210-AC38.

The March proposal creates additional safeguards for retirement plan administrators and provides six factors fiduciaries must consider when selecting investments: performance, fees, liquidity, valuation, benchmarks, and complexity of investment. It would give plan managers a legal presumption of meeting certain fiduciary duties if they follow the proposed review process, but it does not require plans to offer crypto or specify which digital assets may be included.

The rule also sets no minimum market-capitalization requirement. Bitcoin (BTC) and Ether (ETH) could be offered before smaller cryptocurrencies because of their established markets, investment products, liquidity and track records. Bitcoin and Ether had market capitalizations of approximately $1.5 trillion and $273 billion, respectively, according to CoinGecko data as of 20:01 UTC on Nov. 6.

Teresa Goody Guillén, managing partner at Bellementis PLLC, said Bitcoin and Ether are likely to be the first cryptocurrencies offered, while smaller assets could still qualify if they satisfy the same standards applied to other retirement options. “The real question isn’t which cryptocurrencies regulators pick – it’s whether an investment meets the same standards of prudence, liquidity, valuation and investor protection as any other retirement option,” Guillén said. “Big doesn’t mean suitable, and small doesn’t mean disqualified. Digital assets shouldn’t get special treatment, or be excluded because they use different technology.”

Bernardo Brites, co-founder and CEO of Trace Finance, said Bitcoin and Ether are the only digital assets that clearly meet the proposal’s requirements on track record and benchmarks. “The practical test is simpler: can a plan committee document a daily, reliable price from a regulated wrapper? If not, it is not going in.” Brites added that market capitalization matters only indirectly, while ETFs and managed funds may be offered before direct crypto holdings.

President Donald Trump signed an executive order on August 7, 2025, directing regulators to reconsider retirement investment rules covering crypto and alternative assets. Separately, the SEC recently outlined proposed crypto broker-dealer rule changes covering capital requirements and customer-protection standards.