DOL proposes rule easing 401(k) investments in cryptocurrency, other alternative assets
Summary
The U.S. Department of Labor has proposed a rule that would provide a safe harbour for fiduciaries of 401(k) and other defined-contribution plans when selecting “alternative assets” — including cryptocurrency, private market investments, real estate, commodities and similar options. Under the proposal, fiduciaries who choose investments “objectively, thoroughly, and analytically” using six specified factors (performance, fees, liquidity, valuation, benchmarking and complexity) would be presumed reasonable and granted significant deference.
The move follows a presidential executive order directing greater access to alternative assets. The Securities and Exchange Commission co-operated on the proposal and backed it as an update that could help savers participate in innovation and long-term growth. Comments on the rule are due by 1 June 2026. Critics, including the Private Equity Stakeholder Project, warn the safe harbour could weaken transparency and make it harder for workers to challenge risky investments or high fees.
Author style
Punchy: This is a big compliance shift with real consequences for plan menus and fiduciary liability. If you deal with benefits or pension governance, don’t skim — the details matter.
Key Points
- DOL proposes a safe harbour clarifying fiduciary prudence for selecting alternative assets in 401(k) plans.
- Fiduciaries following an “objective, thorough and analytical” selection process tied to six factors (performance, fees, liquidity, valuation, benchmarking and complexity) would be presumed reasonable.
- The rule explicitly covers cryptocurrency, private market funds, real estate, commodities and other non-traditional investments.
- The proposal follows a 2025 executive order encouraging access to alternative assets and rescinds the practical deterrent of earlier warnings about crypto.
- The SEC supported the change as a way to let Americans participate more in innovation through diversified long-term investments.
- Comments on the proposal are due 1 June 2026, giving stakeholders a window to push for changes or clarifications.
- Watchdog groups raised concerns that the safe harbour for private equity could reduce transparency and make it harder for workers to challenge high fees or poor performance.
Why should I read this?
Short version: if you run or advise workplace pensions, this could change what you can put on the menu — and how you defend your choices. It loosens the practical barriers to offering crypto and private-market options, but also raises new questions about disclosure, fees and participant protection. If you care about compliance, risk or what employees can invest in, it’s worth a quick read now.