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2h ago

Labor Department Proposes 401(k) Pathway to Private Assets, Including Crypto

The plan offers process-based protections meant to cut legal risk for plan sponsors.

A new proposed rule from the US Department of Labor aims to give 401(k) plan fiduciaries "maximum discretion and flexibility" in choosing investment alternatives to include on a plan's investment menu.
An American flag hangs on the U.S. Department of Labor headquarters, in Washington, D.C., U.S., September 16, 2025. REUTERS/Daniel Becerril
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Overview

  • The Labor Department, which issued the proposal Monday, acted after a Trump executive order last summer encouraged access to alternatives.
  • The draft clarifies how plan trustees can consider private equity, real estate and cryptocurrencies for 401(k) menus.
  • It would create process-based safe harbors and require reviews of performance, fees, liquidity, valuation and complexity.
  • Shares of Carlyle, Apollo and Blackstone rose after the announcement, reflecting hopes for new retirement-plan capital.
  • Financial advisers flagged liquidity risks in illiquid funds and urged limits on allocations and stronger due diligence by plan sponsors.