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US 401(k) crypto rule leaves room for altcoins, but experts see hurdles

A proposed Labor Department rule letting US 401(k) plans offer crypto has reached the White House for review. Experts say Bitcoin and Ether will likely come first, with smaller tokens facing tougher tests.

InvestIn.News NewsDesk · 1 min read
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Picture from Cointelegraph for: US 401(k) crypto rule leaves room for altcoins, but experts see hurdles
Image: Cointelegraph
Original reporting: Jona Jaupi, Cointelegraph

Key points

  • The March proposal names no eligible digital assets and sets no minimum market capitalisation, but asks plan managers to weigh six factors including liquidity, valuation and complexity.
  • Bernardo Brites of Trace Finance expects some crypto options in 2027, larger-employer ETFs later that year and wider availability by 2028.

A proposed US Labor Department rule on crypto in 401(k) retirement plans leaves the door open to altcoins, though experts told Cointelegraph that smaller tokens face harder tests than Bitcoin and Ether.

The March proposal does not name which digital assets qualify or set a minimum market capitalisation. It instead directs plan managers to weigh six factors: performance, fees, liquidity, valuation, benchmarks and complexity.

Bernardo Brites, co-founder and CEO of Trace Finance, was blunter, saying Bitcoin and Ether pass the test while other tokens fail on track record or benchmarks. He said a plan committee must be able to document a reliable daily price from a regulated wrapper. Both experts expect ETFs and managed funds to arrive before direct crypto holdings, since they fit existing custody and recordkeeping systems.

What to watch: The rule is now with the White House for final review, which Brites said can take days before publication and an effective date typically days later.

Read the full story on Cointelegraph

Live updates on NewsFeeds:AltcoinsBitcoinDesk editor: Keshav Aggarwal (accountable for this page; this summary was not edited by hand)

How this was produced: an AI model wrote this summary of Cointelegraph’s report, which we credit and link above. Read our Editorial and AI policy. Spotted a mistake? See Corrections.

Not investment advice. Read the risk disclaimer.

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