Millions of American Retirees Just Got Access to Crypto in Their 401(k)s

A new proposed rule from the US Department of Labor could broaden 401(k) investment menus beyond traditional stocks and bonds. 

The rule would ease the barriers for 401(k) plans to include alternative assets such as cryptocurrencies, private equity, and real estate.

A Potential Shift for Retirement Savings

The proposal, issued by the Employee Benefits Security Administration, follows President Donald Trump’s August 2025 executive order. It aimed to expand 401(k) investors’ access to alternative assets to improve returns and diversify portfolios.

“The Order directs the Securities and Exchange Commission to facilitate access to alternative assets for participant-directed defined-contribution retirement savings plans by revising applicable regulations and guidance,” the text read.

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Treasury Secretary Scott Bessent described the proposal as a first step toward executing Trump’s executive order “in a safe and smart manner.” He emphasized that it aims to expand retirement investment choices for millions of Americans while still prioritizing the protection of those savings.

“This proposed rule will show how plans can consider products that better reflect the investment landscape as it exists today. This greater diversity will drive innovation and result in a major win for American workers, retirees, and their families,” US Secretary of Labor Lori Chavez-DeRemer said.

The proposal lands at a time when both crypto and private credit markets are under strain. Crypto has shown relative resilience despite ongoing geopolitical tensions.

Nonetheless, the private credit market is facing acute stress as fears around AI disruption erode confidence in software-heavy loan portfolios. The fallout has sparked a surge in redemption requests across the sector, forcing major firms, including BlackRock, Apollo, and others, to cap investor withdrawals as outflow demands far exceed quarterly limits.

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