Labor Department proposes safe-harbor rule allowing 401(k)s to invest in Bitcoin and other digital assets

The U.S. Department of Labor on Monday released a proposed rule that would permit defined‑contribution plans such as 401(k)s to include digital assets in plan menus, a move prompted by an executive order from President Donald Trump directing regulators to expand access to digital assets in retirement portfolios ^[1].

The department’s Employee Benefits Security Administration framed the draft as a process‑driven, safe‑harbor framework for plan fiduciaries to evaluate nontraditional assets, describing the guidance as “historic” and outlining steps fiduciaries should follow when considering crypto and other alternative investments ^{[2] [3]}.

Industry coverage and the Labor Department said the proposal could broaden retirement investors’ access to cryptocurrencies — including Bitcoin and other tokens — and potentially open a very large pool of 401(k) assets to such investments, affecting tens of millions of participants ^{[4] [1]}.

The document published by the Labor Department is a draft rule entering the rulemaking process; it must move through that process before any changes take effect ^{[1] [2]}.