Trump administration moves closer to allowing crypto in 401(k) retirement plans
A proposed rule that would open up 401(k) retirement accounts to alternative assets, including cryptocurrencies, has landed at the White House for consideration.On Thursday, the Department of Labor filed a proposal with the White House's Office of Information and Regulatory Affairs (OIRA), a division within the Office of Management and Budget that reviews federal regulations before publication, to further President Donald Trump's executive order directing the department to pave the way for including alternative assets in 401(k) plans."Such clarification must aim to identify the criteria that fiduciaries should use to prudently balance potentially higher expenses against the objectives of seeking greater long-term net returns and broader diversification of investments," the DOL said in its filing.This comes months after the DOL unveiled its initial rule outlining steps those 401(k) plan managers should take when considering incorporating alternative assets such as digital assets and private equity into their investment profiles. Trump, earlier, had directed the DOL through his executive order.The DOL also earlier reversed guidance discouraging retirement managers from considering crypto as an investment option in 401(k) plans after the department, under the Biden Administration, had raised concerns about crypto in those retirement plans.The proposal to allow for crypto in 401(k) plans has garnered scrutiny on Capitol Hill. Earlier this year, Sens. Bernie Sanders and Elizabeth Warren pushed the DOL to scrap the rule and said it would expose investors to volatile assets, including crypto.In the filing on Thursday, when describing the costs and benefits, the DOL said it was still considering the costs.