The U.S. Department of Labor’s proposed rule to permit cryptocurrency investment options in 401(k) retirement plans has cleared the White House’s regulatory review, moving digital assets a step closer to potential inclusion in America’s roughly $10 trillion 401(k) market.
What Clearing White House Review Means
The review, conducted by the Office of Information and Regulatory Affairs within the White House Office of Management and Budget, is a key step before a federal rule can be published. With this phase completed, the Department of Labor (DOL) can proceed to release the proposal in the Federal Register, triggering a public comment period or, depending on the stage of the rulemaking, finalize the regulation. The final contours of the policy will not be known until the text is published.
Background: DOL’s Evolving Stance on Crypto in 401(k)s
The DOL oversees employer-sponsored retirement plans under the Employee Retirement Income Security Act (ERISA), which imposes strict fiduciary standards on plan sponsors. In 2022, the department issued guidance cautioning plan fiduciaries about the risks of offering cryptocurrency in 401(k) menus, emphasizing volatility, valuation challenges, custody, and regulatory uncertainty. That guidance followed rising interest from service providers, including a 2022 announcement by Fidelity Investments that it would make a Bitcoin option available to employers within 401(k) plans, which drew heightened scrutiny from regulators.
Potential Impact on Retirement Plans
If adopted, the rule would provide a formal framework for how plan fiduciaries might offer cryptocurrency exposure within 401(k)s while meeting ERISA obligations. Any offering would likely be subject to robust risk controls, disclosures, and ongoing due diligence by plan sponsors and recordkeepers. The move could broaden access to digital assets for retirement savers, but fiduciaries would still need to weigh suitability, fees, market volatility, and cybersecurity and custody safeguards.
What to Watch Next
Publication of the proposed rule will outline the DOL’s requirements and guardrails, along with timelines for public comments and potential implementation. Market participants, plan sponsors, and asset managers will be watching for clarity on eligible asset types, plan design considerations, and fiduciary responsibilities before any crypto options appear more widely in 401(k) lineups.