Trump administration moves to allow digital assets and private investment in retirement plans…proposal clears regulatory review

The U.S. government is pressing ahead with a plan to include digital assets (cryptocurrencies) and private investment assets in retirement plans.

According to Bloomberg Law on the 25th (local time), a regulatory proposal that would allow alternative assets such as digital assets and private funds to be added to retirement plans has cleared White House regulatory review.

With the proposal completing review by the Office of Information and Regulatory Affairs (OIRA) under the White House, the U.S. Department of Labor (DOL) has entered a stage where it can release an official draft in the coming weeks.

If finalized, the rule is expected to bring significant changes to the structure of the roughly $12 trillion retirement plan market.

The move follows up on President Donald Trump’s executive order last August directing the Employee Benefits Security Administration (EBSA) within the Labor Department to review guidance related to investments in alternative assets.

Through this proposal, the Labor Department is expected to design the framework to mitigate fiduciary liability risks that could arise when companies include digital assets or private investments in retirement plans.

Companies have so far remained cautious about adopting alternative assets, as they can be exposed to lawsuits from plan participants over underperformance or excessive fees.

The industry is also seeing analysis that, if regulatory clarity is secured, the inclusion of digital assets in the retirement plan market could gradually expand.