A proposed Labor Department rule has reached White House review and could make it easier for US 401(k) plans to offer cryptocurrencies, including smaller tokens. The March proposal names no eligible digital assets and sets no minimum market capitalization. It would not guarantee that any cryptocurrency is offered.
Plan managers would be guided to consider performance, fees, liquidity, valuation, benchmarks and complexity. Experts said smaller tokens could face hurdles because of limited history and liquidity. They expect funds to be offered before direct crypto holdings, which raise storage, cybersecurity and pricing concerns. The proposed legal protection for plan managers would not prevent lawsuits, and one expert warned that a future administration could reverse the rule.
