Key Insights:
- Crypto news: SEC Chair Paul Atkins said it was the “right time” to allow crypto in 401(k) plans in a January 29 CNBC interview. It marked the first major endorsement since Trump cleared regulatory barriers.
- The Department of Labor submitted a proposed rule on fiduciary duties to federal reviewers on January 13, advancing the administration’s 180-day mandate.
- A 0.1%-1% allocation across America’s $10 trillion 401(k) system could channel $10-$100 billion into digital assets.
The latest crypto news featuring SEC Chair Paul Atkins covers his remarks from the CNBC interview on January 29. He said it was the “right time” to open the 401(k) retirement market to crypto.
This is the clearest regulatory signal yet that the Trump administration intends to allow exposure to digital assets within America’s $10 trillion defined-contribution retirement system.
Trump Administration Cleared Prior Barriers
The Department of Labor (DOL) rescinded its March 2022 guidance on May 28. It removed language that told 401(k) fiduciaries to exercise “extreme care” before adding cryptocurrency options.
DOL said the rescission restored a neutral stance and emphasized that fiduciaries, not the agency, make plan menu decisions under ERISA. President Trump signed an executive order on August 7, 2025. Its goal was “democratizing access” to alternative assets in participant-directed retirement plans.
The order explicitly defined “alternative assets” to include “holdings in actively managed investment vehicles that are investing in digital assets”. It also directed DOL to propose rules within 180 days intended to curb ERISA litigation risk.
DOL rescinded its December 21, 2021, statement discouraging private equity and alternative assets in 401(k) menus on August 12, 2025.
The executive order called out that 2021 statement for reconsideration, and the DOL’s rescission cleared another regulatory hurdle that the industry viewed as discouraging crypto adoption.
DOL submitted a proposed rule titled “Fiduciary Duties in Selecting Designated Investment Alternatives” to federal reviewers on January 13.
The proposal carries designation RIN 1210-AC38 and is marked “Economically Significant” on Reginfo.gov. That indicates the DOL has moved from guidance statements to formal rulemaking aligned with the executive order’s agenda.
The January submission means DOL hit its self-imposed 180-day deadline with weeks to spare.
The proposed rule will likely establish safe-harbor criteria that plan committees can follow when adding crypto-related investment options. As a result, it will address litigation concerns that have kept most sponsors from offering exposure to digital assets.
Crypto News: $10 Billion to $100 Billion Could Flow Under Conservative Scenarios
Americans held $10 trillion in 401(k) plans as of September 30, 2025, according to Investment Company Institute quarterly data.
The size of potential crypto allocations depends entirely on adoption rates and plan sponsor behavior. However, even conservative scenarios produce significant capital estimates.
A 0.1% allocation across the $10 trillion base equals roughly $10 billion in crypto exposure. A 0.5% allocation produces $50 billion, 1% generates $100 billion, and 2% implies $200 billion in digital-asset holdings inside 401(k) accounts.
Government Accountability Office (GAO) research found that crypto investment in 401(k)s is “substantially less than 1%” today. Besides, fiduciary concerns about participant lawsuits may limit its use.
That baseline suggests even low-end scenarios would represent a step change relative to current penetration. It is still small relative to overall retirement allocations.
The executive order’s definition of alternative assets points to “actively managed investment vehicles” that invest in digital assets rather than holding tokens directly.
That structure aligns with how the retirement industry has packaged private markets and other complex assets for 401(k) menus. It happened through funds, collective investment trusts, and multi-asset allocation vehicles.
GAO identified multiple access paths to crypto in 401(k) plans, including core investment options and self-directed brokerage windows. The agency emphasized that fiduciaries remain responsible for deciding whether and how to offer crypto options. It makes the implementation channel a critical determinant of scale.
Fidelity announced in mid-2022 that it would allow employers on its platform to add a Bitcoin option with allocation caps set by employers. The decision illustrated that the practical barrier has been sponsor appetite and fiduciary risk tolerance, not the physical inability to offer such an option.
The Trump administration’s policy focuses on safe harbors and litigation risk reduction directly targets that barrier.
Crypto News: US SEC and DOL Coordinate on Retirement Access
The executive order instructed the DOL to consult with the Treasury, the US SEC, and other regulators on parallel regulatory changes.
The SEC received an explicit mandate to consider changes to facilitate access to participant-directed retirement plans. That included potentially revisiting “accredited investor” and “qualified purchaser” guidance that restricts access to private assets.
Sen. Elizabeth Warren sent a letter to Atkins on January 12, explicitly targeting the executive order’s impact on retirement accounts and requesting information from the SEC.
The congressional oversight signals that regulators face pressure on both sides. The administration aims to enable crypto access, and lawmakers are concerned about retirement security.
Litigation Risk Remains Key Constraint
The executive order repeatedly frames litigation as the binding constraint. It instructs DOL to prioritize actions that may curb ERISA litigation when clarifying fiduciary duties around alternative assets. That focus acknowledges that technical feasibility is not the bottleneck holding back 401(k) crypto adoption.
DOL’s May 2025 rescission used pointed language, calling prior guidance a “thumb on the scale,” and emphasized returning to principles-based neutrality.
The agency framed the change as reducing the chance that fiduciaries view crypto exposure as implicitly disfavored by the primary ERISA regulator. GAO’s report supports the litigation-centric theory. It noted fiduciary concerns about participant lawsuits as a potential limitation on use.
Even with regulatory “permission,” crypto exposure can remain marginal without a meaningful risk shield that changes plan sponsor behavior.
The proposed rule DOL submitted on January 13 likely will become the industry’s reference point for what a “defensible” plan committee process looks like when adding any alternative-asset sleeve that includes digital-asset exposure.
Whether it succeeds in changing sponsor behavior and how much capital actually flows depend on whether the final safe-harbor framework provides fiduciaries with sufficient legal cover to act.