U.S. 401(k) Retirement Plan Rules May Open Doors for Altcoins, But Barriers Remain

Huo Xing Finance reports that the proposed rule by the U.S. Department of Labor allowing alternative assets such as cryptocurrencies in 401(k) retirement plans was submitted to the White House for final review on November 5. The proposal does not specify which types of cryptocurrencies are eligible, nor does it set a minimum market capitalization threshold, meaning altcoins and low-to-mid-cap tokens could potentially be included in U.S. retirement investment plans in the future.

However, industry experts note that asset managers must still conduct a comprehensive evaluation of performance, fees, liquidity, valuation, benchmark metrics, and investment complexity when selecting investment targets. Bitcoin and Ethereum, with their mature markets and established investment products, are expected to be the first to gain access, while smaller-cap tokens may face higher barriers due to insufficient historical data, limited liquidity, and a lack of reliable valuation benchmarks.

In addition, experts anticipate that cryptocurrency ETFs and managed funds will enter 401(k) plans before direct crypto holdings, as they are easier to integrate into existing custodial and account management systems. The industry expects some cryptocurrency investment options to begin rolling out in 2027, with broader adoption expected around 2028.

This proposal still requires completion of White House review and subsequent legislative procedures, and it will not fully eliminate fiduciary responsibilities or litigation risks for retirement plan administrators.