US Labor Department Proposes Rule to Allow Retirement Plans to Invest in Cryptocurrencies

The US Department of Labor (DOL) has proposed a regulation that would allow retirement plans to include investments in alternative assets, such as cryptocurrencies and private markets.

The proposal comes after President Trump's executive order last year instructing the DOL to reexamine its guidance on incorporating these assets into retirement plans.

The new rule would alleviate certain regulatory burdens and litigation risk that interfere with American workers' ability to achieve competitive returns and asset diversification in their retirement accounts.

Under the proposed regulation, plan sponsors must carefully weigh six key factors when selecting alternative investments: performance, fees, liquidity, valuation, benchmarks, and complexity. The rule will undergo additional review, including a 60-day period for public comment, before it can be finalized.