The U.S. Department of Labor has proposed a rule to expand the types of investments allowed in 401(k) retirement plans, including alternative assets such as cryptocurrency, private equity, and real estate. The move follows an executive order by President Donald Trump last summer and aims to modernize retirement investment options.
Immediate Action & Core Facts
The Department of Labor issued the proposal on September 9, 2025, outlining how plan sponsors and fiduciaries can incorporate alternative assets into 401(k) plans. Labor Secretary Lori Chavez-DeRemer stated the rule reflects the current investment landscape and delivers on the president’s promise to foster a retirement system that allows more Americans to retire with dignity.
Deeper Dive & Context
The proposed rule specifies that fiduciaries must consider factors such as performance, fees, liquidity, and valuation when selecting alternative assets. This shift opens traditionally conservative retirement plans to more speculative and less liquid investments.
Market Reaction
Shares of private equity firms like Apollo Global Management, Blackstone, and KKR rose 4% to 5% following the announcement. Cryptocurrencies also saw gains, with Bitcoin rising 1% and Ether up more than 2%. These assets have faced a bear market in 2026, making the timing of the proposal notable.
Policy Background
The proposal follows President Trump’s executive order, which directed the Labor Department and the Securities and Exchange Commission to facilitate expanded access to alternative assets. Historically, these investments have been reserved for institutions and wealthy investors.
Fiduciary Considerations
Under the Employee Retirement Income Security Act (ERISA), fiduciaries have a duty to act in the best interest of retirement plan members. The proposed rule provides guidance on how to balance risk and opportunity when including alternative assets in 401(k) plans.