The US Department of Labor has published a proposed rule that would allow cryptocurrencies, including Bitcoin, to be included in 401(k) retirement plans. The initiative responds to President Donald Trump's executive order from August 2025 and could potentially open access to the $13.9 trillion defined-contribution market - the largest segment of America's retirement savings.
What the new rule entails
The rule titled "Fiduciary Duties in Selecting Designated Investment Alternatives" establishes a process-based safe harbor mechanism for retirement fund managers. Fiduciaries who conduct proper due diligence according to defined criteria will receive clear legal protection when including alternative assets, from cryptocurrencies to private equity and real estate - in a plan's investment menu.
The key aspect of the initiative lies in changing the status of cryptocurrencies: they are no longer treated as a uniquely restricted asset class. The fiduciary responsibility standard now applies equally to all alternative investments. Previously, most fund managers avoided any crypto inclusion due to fears of lawsuits from plan participants in the event of losses.
The White House Office of Information and Regulatory Affairs (OIRA) completed its review of the proposal on March 24, 2026, classifying it as "economically significant." Following publication, a 60-day public comment period will begin, collecting feedback from industry, lawmakers, and the public before potential revisions and final adoption.
Six evaluation criteria for fiduciaries
The proposed rule defines six mandatory factors that fund managers must analyze before adding any new investment option to a plan:
- Performance: historical returns and reasonable expectations for future results
- Fees: total cost burden for plan participants, including all hidden charges
- Liquidity: ability to exit positions quickly without significant loss of value
- Valuation: transparency and reliability of the asset's pricing mechanism
- Benchmarks: availability of comparative indices for objective performance evaluation
- Complexity: how understandable the investment product is for ordinary plan participants
Meeting these criteria gives fiduciaries legal confidence that their decisions are protected from potential lawsuits. In practice, this means spot crypto ETFs, particularly Bitcoin ETFs from BlackRock and Fidelity - will become the most likely candidates for 401(k) inclusion, as they best satisfy all six criteria through regulatory oversight, liquidity, and transparent pricing.
Scale of potential impact
Americans held approximately $10.1 trillion in 401(k) plans as of the end of 2025, up from $9 trillion a year earlier. Even if just 1-2% of these assets were directed toward cryptocurrencies, that would mean $100-200 billion in new institutional capital - significantly exceeding the combined volume of existing crypto ETFs.
Millions of American workers would gain access to Ethereum, Bitcoin, and other digital assets through their familiar retirement accounts without needing to register on crypto exchanges or create their own wallets. In particular, the rule does not envision direct cryptocurrency storage, access would be implemented through regulated investment vehicles.
Criticism and risks
The initiative has faced strong opposition from some lawmakers. Senator Elizabeth Warren warned that including cryptocurrencies in retirement plans could expose workers to elevated risks, high fees, and potentially devastating losses. In her view, digital asset volatility is incompatible with safe long-term retirement investing.
Analysts also note the unfortunate timing of the proposal: Bitcoin is closing Q1 2026 with a 23% decline - its worst first-quarter performance since 2018. The Fear & Greed Index sits at 11 out of 100, suggesting "extreme fear" in the market. However, proponents of the rule emphasize that retirement investing is designed for decades, not quarterly market swings.
Implications for the crypto market
Opening the world's largest retirement market to cryptocurrencies fits into a broader trend of digital asset institutionalization in the US. Together with Bitcoin ETF growth, CFTC's acceptance of crypto as collateral on derivatives markets, and active stablecoin legislation discussions, the 401(k) rule could become a tipping point for mainstream crypto adoption.
For those considering buying Bitcoin with hryvnia, growing institutional demand in the US could positively impact the long-term price trajectory. However, the 60-day comment period, potential legal challenges, and the need for final implementation mean that the real market impact will not materialize before the second half of 2026.
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