The US Department of Labor has submitted a proposed regulatory framework to the White House for review, moving a step closer to potentially allowing cryptocurrencies and other alternative investments in employer-sponsored 401(k) retirement plans. The filing, submitted on November 5 to the Office of Information and Regulatory Affairs (OIRA), follows President Donald Trump’s August 2025 executive order directing federal agencies to make it easier for retirement plans to consider alternative investments, including cryptocurrencies, private equity and real estate.
OIRA, which operates under the White House Office of Management and Budget, reviews federal regulations before they are finalized and published. The proposal’s arrival does not mean Americans can immediately add crypto to their retirement portfolios; it must first clear the White House review process.
Background and framework
The latest move builds on an earlier regulatory proposal released in March 2026, which outlined how retirement plan managers could assess alternative assets when deciding whether to include them among investment options. In its new filing, the Labor Department emphasized the need for fiduciaries to balance potentially higher investment expenses against the possibility of stronger long-term returns and broader portfolio diversification. The agency also indicated that it is still evaluating the costs associated with the proposed framework.
The proposed framework does not instruct employers to add Bitcoin or other cryptocurrencies to their retirement plans. Instead, it establishes a process that fiduciaries could follow when evaluating alternative investments. The March proposal identified six areas for consideration: performance, fees, liquidity, valuation, performance benchmarks and investment complexity. These factors are particularly important for digital assets because cryptocurrency markets can experience sharp price movements, while certain investment products may carry higher management fees or involve complicated structures. The proposal also addresses how managers should evaluate assets that do not have readily available market prices, which is especially relevant to private equity and other investments not traded as frequently as publicly listed stocks.
Market potential and political opposition
According to the Investment Company Institute, US 401(k) plans held approximately $10.8 trillion in assets at the end of June 2026. Crypto-focused company Sweep highlighted the scale of that market in a November 6 post on X, suggesting that a 2% allocation of those assets to cryptocurrency could translate into approximately $216 billion in potential inflows. However, the calculation assumes that 2% of the entire retirement asset pool moves into cryptocurrency, and there is currently no indication that employers, fiduciaries or individual savers will adopt such an allocation.
The proposal has attracted criticism from lawmakers concerned about exposing retirement savings to volatile and potentially complex investments. Senators Bernie Sanders and Elizabeth Warren have previously urged the Labor Department to abandon the initiative, arguing that including assets such as cryptocurrency in retirement plans could expose ordinary investors to unnecessary financial risks. Their concerns center on crypto’s price volatility, investment complexity and the possibility that inexperienced savers could struggle to assess the risks associated with digital assets.
The regulatory debate also reflects a broader shift in the Labor Department’s approach. During the Biden administration, the department issued guidance warning retirement plan managers to exercise extreme care before considering cryptocurrency investments. The Trump administration later withdrew that guidance, returning to a more neutral position on crypto exposure in retirement accounts.
What happens next
The White House review must be completed before the Labor Department can move toward publication of the final rule. Even then, the framework would not automatically make Bitcoin or other cryptocurrencies available in every workplace retirement account. The ultimate impact will depend on how many retirement providers are comfortable offering digital asset exposure and how much risk investors are willing to accept.
