Crypto in U.S. 401(k) Retirement Plans Advances as Labor Department Sends Proposal

U.S. Labor Department proposal to allow cryptocurrency investment options in employer-sponsored 401(k) retirement plans.

A proposal that could open the door for cryptocurrency investments in U.S. 401(k) retirement plans has advanced to the White House for review, marking another step toward allowing American workers to allocate part of their retirement savings to digital assets.

The U.S. Department of Labor has sent its proposal to the White House for review. If the rule is finalized and an employer chooses to add a cryptocurrency fund to its retirement plan, eligible workers could invest a portion of their savings in crypto through their 401(k) accounts.

The development does not mean cryptocurrency investments are already available across U.S. workplace retirement plans. The proposal remains under review, and employers would still need to decide whether to include a crypto investment option in their plans.

401(k) Plans Represent a $10.1 Trillion Retirement Market

The potential policy change concerns a substantial part of the U.S. retirement system. According to figures cited by Coin Bureau, 401(k) plans held $10.1 trillion in assets based on 2025 records and had approximately 70 million active participants.

These plans allow U.S. employees to direct part of their paychecks into retirement savings accounts. The money is invested through options made available under each employer's plan, with the goal of building savings for retirement.

If the Labor Department proposal becomes a finalized rule and an employer adds a cryptocurrency fund, workers could gain the option to place part of those retirement contributions into digital assets. The proposal would therefore create a potential route for crypto exposure within employer-sponsored retirement accounts, rather than automatically adding cryptocurrency to every 401(k) plan.

Labor Department Still Assessing Costs as Lawmakers Object

The Labor Department is continuing to assess the costs associated with the proposal. That review remains part of the process before the measure can be finalized, meaning the potential change has not yet become an established option for retirement savers.

The proposal has also drawn opposition from Democratic Senators Elizabeth Warren and Bernie Sanders. Both lawmakers want the measure scrapped, citing concerns about the risks cryptocurrency investments could pose to retirement savings.

Their objections place retirement security at the center of the debate over whether digital assets should be made available through workplace investment plans. While supporters of broader investment choices may view the proposal as a potential way to expand access to crypto, Warren and Sanders have raised concerns about exposing retirement funds to those risks.

For now, the proposal's progress to the White House represents a review milestone, not a finalized policy. Any potential access to cryptocurrency through 401(k) accounts would depend on the rule being finalized and individual employers deciding to offer a crypto fund.

Writer: Victoria Hale
Technology & Blockchain Writer

Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.

She prioritises clarity and accuracy when explaining technical developments to a general audience.