US Labor Department Proposes Rule Allowing Private Equity and Crypto in 401(k) Plans

The US Labor Department has proposed a new rule that would permit private equity and cryptocurrency investments in Americans' 401(k) plans. This move follows an executive order from President Trump, which was seen as a benefit to Wall Street investors.

According to the proposal, employers would be allowed to include these types of investments in their employees' retirement plans. A 'safe harbor' provision would also protect administrators from legal action if they choose to offer these products.

Critics argue that this could lead to significant losses for millions of workers relying on their retirement accounts. They point out that private equity funds have historically underperformed public markets and charged higher fees, while cryptocurrency investments are known for their volatility.