The US is advancing its crypto regulations by permitting Americans to invest in Bitcoin and other digital assets through 401(k) retirement plans. The White House has approved a review process for a Department of Labor proposal, which would permit these assets as part of crypto retirement options.
US To Promote Crypto Retirement Fund Plans
The US White House has completed its review of a proposal to allow Bitcoin and other major cryptocurrencies in 401(k) retirement plans. The crypto retirement proposal now awaits an official decision from the Department of Labor (DOL). If approved, this move could allow retirement funds to flow into crypto and alternative assets.
Kelsey Mayo, ARA’s Chief of Retirement Policy and Regulatory Affairs, stated,
“The Office and Management and Budget’s return of the proposed rule to DOL is an important procedural step in the rulemaking process. It means the proposal has cleared interagency review and is now ready for the DOL to move forward with publication.”
It is worth noting that the crypto retirement update comes amid other major crypto regulatory developments in the US. The much-anticipated CLARITY Act is moving towards final passage as the White House and Senate have agreed on the stablecoin yield proposal. The timeline of Bill passage is however depending on the Senate’s tight calendar and April 13-20 is very crucial for Banking committee markup.
The proposal follows an August 2025 executive order from President Trump. This order directed the Labor Secretary, the Treasury, and the SEC to review and clarify rules on including private market and digital investments in retirement plans.
Trump had also instructed to relax restrictions on alternative investments, including private equity, real estate, infrastructure, commodities, and cryptocurrencies.
Retirement Accounts Eye Crypto Investments Across the US
The August executive order highlighted that excessive regulation and opportunistic lawsuits have limited investment options for 401(k) and other retirement plans. Many participants are stuck with assets that don’t deliver the long-term benefits enjoyed by public pensions and institutional investors. The order added,
“In carrying out the directives in this section to further the policy set forth in this order, the Secretary shall prioritize actions that may curb ERISA litigation that constrains fiduciaries’ ability to apply their best judgment in offering investment opportunities to relevant plan participants.”
Since the August executive order, several US states have moved quickly to introduce crypto retirement funds. States like North Carolina and Indiana have been actively looking for ways to include Bitcoin in retirement investments. As CoinGape reported, in early March, Governor Mike Braun signed House Bill 1042 into law. Thus, Indiana became the first US State to legalize crypto retirement funds.