The U.S. government is moving closer to allowing crypto inside retirement accounts—and that’s a big shift.
The U.S. Department of Labor has put forward a proposal that could let cryptocurrencies and other alternative assets be included in 401(k) retirement plans. In simple terms, this could bring crypto into mainstream investing for everyday workers.
Right now, the proposal is open for public feedback for 60 days after being published in the Federal Register. It also follows a push from Donald Trump to expand investment choices in retirement plans.
So what’s actually changing?
The new framework gives clear guidance to the people who manage retirement funds—basically telling them how to safely consider adding crypto and similar assets. It lays out six key things they need to look at:
- Performance (how the investment has done)
- Costs (fees and expenses)
- Liquidity (how easily it can be bought or sold)
- Valuation (how its price is determined)
- Benchmarking (how it compares to other investments)
- Complexity (how difficult it is to understand and manage)
Importantly, the proposal officially recognizes digital assets as their own category of investment.
Why does this matter?
Until now, many retirement plan managers avoided crypto because they were worried about legal risks. This new rule is trying to fix that by giving them a clear, structured way to evaluate these assets. That means less fear of being sued for including something like Bitcoin in a retirement plan.
If this becomes final, it could be a turning point.
There’s trillions of dollars sitting in 401(k) accounts. Even a small portion moving into crypto could have a huge impact on the market.
Big financial firms are already thinking about this. Morgan Stanley has suggested allocating around 2% to 4% of a portfolio to crypto, while BlackRock is taking a more cautious approach with about 1% to 2%.
In simple terms, this proposal could open the door for more institutional money to flow into crypto—and make it a normal part of long-term retirement investing, not just a risky side bet.
