The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) has cleared White House review for its proposed rule on alternative asset investments in 401(k) plans. Documents obtained by Bloomberg Law confirm the Office of Information and Regulatory Affairs (OIRA) completed its review—the final administrative hurdle before formal publication.
Executive Order Set 180-Day Clock
The timeline traces back to August 2025, when President Trump signed an executive order directing DOL to reassess ERISA’s guidance on alternative assets within 180 days. ERISA has long been interpreted to impose strict fiduciary duties that made plan sponsors cautious about volatile assets like crypto. The order was designed to loosen those legal constraints. Republicans in Congress are also advancing legislation to codify the order’s intent, ensuring policy stability regardless of future administrations.
$12 Trillion Pool, Even 1% Means $120 Billion
401(k) plans represent America’s dominant workplace retirement savings vehicle, holding over $12 trillion for roughly 70 million workers. Currently, these funds are almost entirely in stocks, bonds, and mutual funds. If the rule takes effect, plan sponsors will have clear legal authority to allocate portions to crypto, private equity, infrastructure, and real estate. Even a 1% to 5% allocation would funnel $120 billion to $600 billion into digital assets.
Bitcoin’s 50% Pullback Stirs Safety Debate
Policy optimism collides with market reality. Bitcoin has dropped more than 50% from its 2025 all-time high of roughly $126,000, fueling sharp criticism from worker advocacy groups and some Democratic lawmakers. They argue that exposing 401(k) accounts to high-volatility assets puts ordinary workers’ retirement security at disproportionate risk. Once the proposed rule is published, a public comment period of 60 to 90 days will follow. Final implementation is expected no earlier than the second half of 2026.
Key Dates
August 2025: Trump signs executive order on ERISA alternative assets
Late January 2026: OIRA review completed
March 2026: Notice of Proposed Rulemaking (NPRM) expected
H2 2026 (estimated): Comment period ends + final rule takes effect