U.S. Proposal to Include Cryptocurrency in 401(k) Plans Advances

• The U.S. proposal clears the review stage and moves toward allowing crypto in 401(k) plans.
• Executive order directs agencies to expand retirement access to alternative assets.
• Indiana law marks the first state approval of crypto retirement investment frameworks.

A U.S. regulatory proposal that could allow crypto and private equity investments within 401(k) retirement plans has advanced after completing a key federal review stage. The measure, backed by U.S. President Donald Trump, cleared the White House’s regulatory process, positioning it for formal release by the U.S. Department of Labor.

The Office of Information and Regulatory Affairs completed its review of the proposed rule on March 24. This clearance allows the Department of Labor to move forward with publication in the coming weeks. The proposal is intended to amend fiduciary guidance under the Employee Retirement Income Security Act, which governs employer-sponsored retirement plans.

If finalized, the rule would permit plan sponsors to include cryptocurrency and private equity among designated investment options available to participants. The proposed changes follow an executive order issued in August 2025 directing federal agencies to evaluate pathways for integrating alternative assets into retirement savings structures.

Kelsey Mayo, Chief of Retirement Policy and Regulatory Affairs at the American Retirement Association, stated that the return of the proposal to the Labor Department confirms the completion of interagency review and signals readiness for the next stage of the rulemaking process.

Executive Order Directed Broader Access to Alternative Assets

The regulatory effort stems from an executive order signed by President Trump, which instructed the Department of Labor, the Treasury, and the Securities and Exchange Commission to review existing limitations on retirement plan investments. The directive specifically called for clarification on the inclusion of digital assets and private market investments within participant-directed plans.

The order also outlined a broader objective to reduce constraints affecting fiduciary decision-making. It referenced concerns that regulatory requirements and litigation risks have limited the range of investment options offered to retirement plan participants.

In addition to cryptocurrencies, the directive covered asset classes such as private equity, real estate, infrastructure, and commodities. Federal agencies were tasked with exploring mechanisms to facilitate access to these alternatives within retirement accounts governed by federal law.

State-Level Activity Expands Crypto Retirement Options

Following the federal directive, several U.S. states have introduced measures related to cryptocurrency investments in retirement systems. North Carolina and Indiana have examined ways to incorporate Bitcoin into retirement portfolios.

In early March, Indiana enacted House Bill 1042, signed by Governor Mike Braun, creating a legal basis for crypto retirement funds at the state level. The legislation marked the first time a U.S. state formally approved such investment structures within retirement planning frameworks.

Related: Why Elizabeth Warren Says Crypto Has No Place in Workers’ 401(k) Savings