US Labor Department Proposes Rule for Crypto in 401(k) Plans

The US Labor Department has proposed a new rule that allows 401(k) fiduciaries to consider alternative assets, including cryptocurrency, under a strict evaluation process. This is a significant shift from earlier guidance that discouraged crypto exposure in retirement plans.

According to the proposal, plan managers would need to assess factors such as performance expectations, fees, liquidity, valuation methods, benchmarks, and complexity before adding crypto investments. This process-driven approach aims to ensure that fiduciaries make informed decisions about including alternative assets in their plan menus.