A proposal from the US Department of Labor’s Employee Benefits Security Administration could expand what Americans are allowed to hold in 401(k) and other defined-contribution retirement plans, opening the door for alternative assets that may include crypto. The proposal followed an executive order issued by President Donald Trump in August 2025, which called for wider access to alternative investments in retirement plans and highlighted diversification and potential returns as priorities.
Executive order targets regulatory barriers
The text of the order said the Securities and Exchange Commission should remove regulatory obstacles and revise relevant rules and guidance so participant-directed retirement savings plans can access assets beyond conventional stocks and bonds. The Employee Benefits Security Administration, which oversees health and retirement benefits for American workers, is responsible for plan integrity and participant protection. Its latest move suggests regulators are looking to update benefit oversight as financial markets and investment products change.
Treasury and Labor officials back the proposal
US Treasury Secretary Scott Bessent described the measure as a foundational step in carrying out the President’s directive. He said the goal is to implement changes safely while broadening retirement investment choices for millions of Americans. He also said investor protection remains a top priority during the process.
Labor Secretary Lori Chavez-DeRemer said the proposed rule would show how plans can evaluate products that better reflect the investment market as it exists today. In her view, a wider menu of assets could benefit workers, retirees, and their families.
Proposal arrives during volatility in alternative assets
The rulemaking effort comes at a time of uncertainty in both crypto and private credit. The report said digital assets have shown resilience despite global geopolitical pressure. Private credit, by contrast, has faced volatility tied to concerns that artificial intelligence could disrupt loans linked to software-dependent businesses.
Recent stress in private credit has also led to notable outflows. Major firms including BlackRock and Apollo capped investor redemptions after withdrawal requests exceeded quarterly limits. Even with caution still visible across alternative assets, the Labor Department’s proposal points to an effort to keep retirement savings options aligned with the broader evolution of financial products.