Trump administration pushes to ease 401(k) rules… raising expectations for broader crypto inclusion
Summary
- The U.S. Department of Labor said it has released a draft rule that would make it easier to allow alternative assets, including virtual assets, to be included in 401(k) retirement plans.
- It added that the new rule focuses on strengthening legal protections for companies to reduce class-action lawsuit risk, and is expected to enable inclusion of a range of asset classes such as virtual assets, private credit, private funds, and real estate.
- It added that expectations are growing that participation could expand among companies that have been reluctant to introduce alternative assets due to the burden of legal risk.
Forecast Trend Report by Period
The United States is moving to ease regulations on alternative-asset investing within retirement plans.
According to a draft rule released on the 30th (local time) by the U.S. Department of Labor (DOL), the key is to make it easier to allow alternative assets—including virtual assets (cryptocurrencies)—to be included in 401(k) retirement plans.
The new rule focuses on strengthening legal protections for companies to reduce class-action lawsuit risk, and is expected to enable inclusion of a wide range of asset classes such as virtual assets, private credit, private funds, and real estate.
However, fiduciaries must assess investment suitability based on criteria including performance, fees, liquidity, and valuation.
Expectations are growing that participation could expand among companies that have been reluctant to adopt alternative assets due to the burden of legal risk.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
