Blockchain Association Backs New DOL Rule on Crypto-Related Investments in 401(k) Plans

The US Department of Labor (DOL) has proposed a new rule that could make it easier for 401(k) retirement plans to offer investment options with exposure to digital assets. The proposal, which was supported by the Blockchain Association, centers on fiduciary duties under ERISA and follows the administration's broader effort to expand access to alternative investments within retirement accounts.

The new rule would allow plan sponsors to consider funds with digital asset exposure if they determine such investments are appropriate for participants' retirement objectives and risk profiles. This approach is seen as a departure from previous guidance, which urged fiduciaries to exercise 'extreme care' before including cryptocurrency investments in retirement plans.