The U.S. Department of Labor issued a proposed rule Monday that would create a safe harbor for 401(k) fiduciaries that follow a specific review process when choosing alternative investment options — including funds with exposure to cryptocurrencies and other digital assets — potentially opening up what the agency describes as a participant-directed retirement market worth $8.8 trillion covering nearly 721,000 plans.
The proposal was submitted for public inspection through the Federal Register on March 30, and is scheduled to be formally published by Tuesday, kicking off a record 60-day public comment period.
We believe that the structural importance of this rule extends beyond its direct regulatory mechanisms. By re-establishing the fiduciary duty to process rather than to outcome – effectively removing the explicitly outcomes-based burden imposed by the Biden-era guidance – the Department of Labor has shifted the legal calculus for plan administrators from “avoid crypto” to “document your review.”
This is a very different compliance situation, and one towards which enterprise product providers have been moving since the repeal of the advance directive last May.
Hard-working Americans deserve more choices, not less, when they retire.
@potos I am committed to removing regulatory burdens so workers have access to financial alternatives they can choose from for their 401(k).https://t.co/sAodP4mTED pic.twitter.com/E5gKLeVUcr– Secretary Lori Chavez de Remer (@SecretaryLCD) March 30, 2026
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DOL’s Safe Harbor Proposal: Mechanics of the Rules and Fiduciary Framework
Proposed Rule – Formally Titled Fiduciary duties in selecting specific investment alternatives – Operates under the Employee Retirement Income Security Act (ERISA), the federal law that governs private sector retirement plan administration.
The mechanism works as follows: A plan fiduciary that conducts a documented review across six specific dimensions—performance, fees, liquidity, valuation, benchmarking, and complexity—will receive safe harbor protection against liability claims arising from the selection of that investment option, regardless of subsequent asset performance.
This framework is notable in that it does not constitute an endorsement of any particular asset class. The rule does not name Bitcoin, Ethereum, or any specific cryptocurrency — it sets a procedural ground that, if met, insulates fiduciaries from litigation under ERISA’s duty of caution standard.
The Department of Labor’s Employee Benefits Security Administration (EBSA) submitted the proposal to the White House Office of Information and Regulatory Affairs (OIRA) on January 13, 2026; OIRA completed its review, classified the rule as “economically significant” and marked it as “change approved,” between March 24 and March 26 before DOL made it public.
source: Countries
The rule implements a directive from President Donald Trump’s executive order issued on August 7, 2025, requiring the Departments of Labor, Treasury, and the Securities and Exchange Commission to review and remove barriers to alternative assets — including private equity, real estate, and digital investments — within defined contribution plans. Labor Secretary Lori Chavez de Remer described the proposal as an attempt to “align retirement investing with modern financial markets,” noting that “more diversification would drive innovation and result in a big win for American workers, retirees and their families.”
Current usage standards underscore the progress available: data in the proposal indicates that only 4% of defined contribution plans offered any alternative investments last year, with just 0.1% of total assets allocated to them.
Separately, Rep. Troy Downing (R-MT), a freshman member of Congress who has made access to cryptocurrencies in retirement accounts a legislative priority this year, is introducing a bill Tuesday that would codify the August executive order into statutory law — a move that would insulate the policy from any reversal by a future administration and potentially speed up 401(k) provider adoption before any final rulemaking.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to provide accurate and timely information but should not be considered financial or investment advice. Since market conditions can change rapidly, we encourage you to verify the information yourself and consult with a professional before making any decisions based on this content.
Daniel Francis is a technical writer and Web3 educator specializing in macroeconomics and DeFi mechanics. A crypto native since 2017, Daniel brings his background in cross-chain analytics to author evidence-based reports and detailed guides. It is certified by the Blockchain Council and is dedicated to providing “information gain” that cuts through the market noise to find blockchain’s real-world utility.
