US Labor Department Proposes Rule Allowing 401(k) Investment in Crypto and Private Credit

Employer-sponsored U.S. 401(k) plans are governed by the Employee Retirement Income Security Act, or ERISA, and have long focused on publicly traded stock and bond funds. Private equity, private credit and cryptocurrencies have rarely been included because of their low liquidity, opaque valuations and high fees. Trump signed an executive order on August 7, 2025, directing officials to expand access to alternative assets, a move affecting more than 90 million savers.

The U.S. Labor Department’s Employee Benefits Security Administration, or EBSA, proposed a new rule on March 30, 2026, establishing a procedural safe harbor for plan fiduciaries. It would require prudent assessments of six factors: performance, fees, liquidity, valuation, benchmarks and complexity. The rule would not require plans to include alternative assets. The 401(k) market is worth about $14.2 trillion; supporters say the measure could reduce litigation risk, while critics worry that retirement savings would be exposed to high fees and price volatility.