PANews reported on March 31 that, according to CoinDesk, the U.S. Department of Labor has proposed a new rule to allow 401(k) retirement plans to incorporate alternative assets such as cryptocurrencies, private equity, and real estate, in response to President Trump's executive order signed last August. If passed, this rule would change the traditional stock and bond-dominated structure of retirement plans, allowing plan providers to add privately traded products such as digital assets. The Labor Secretary stated that the rule aims to make retirement plans better reflect the current investment environment.
Supporters argue this move could improve portfolio diversification, but Senator Elizabeth Warren warns it could expose workers to higher risks, costs, and potential losses. The U.S. 401(k) plan holds trillions of dollars in retirement savings, and even allocating just a small fraction to digital assets could bring substantial inflows to the crypto market.
