Labor Department 401(k) rule: It’s under White House review—does that mean you can buy crypto now?
A final rule from the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) was sent to the White House Office of Information and Regulatory Affairs (OIRA) on November 5 for review under EO 12866. Its official title is “Fiduciary Duties When Selecting Designated Investment Options,” RIN 1210-AC38. It is listed as a Final Rule with significant economic impact.
A few things not to confuse:
1. Under review ≠ in effect. The full final rule has not yet been published in the Federal Register, and its effective date has not been announced.
2. This is a procedural safe harbor for plan fiduciaries, not a requirement that every company’s 401(k) menu include crypto assets.
3. The March 31 proposed version stated that when selecting designated investment options, fiduciaries may use a prudent process based on six factors: performance, fees, liquidity, valuation, benchmarks, and complexity. Alternative assets (which, under the executive order’s definition, include actively managed investment vehicles that invest in digital assets) may also be included in the evaluation—but completing the process ≠ recommending that you buy.
What ordinary people can do: Don’t read “under White House review” as “you can go all in on crypto with your retirement account tomorrow.” Wait for the final rule to be published in the Federal Register, then check whether your plan’s menu includes these options and what restrictions apply.
A final rule from the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) was sent to the White House Office of Information and Regulatory Affairs (OIRA) on November 5 for review under EO 12866. Its official title is “Fiduciary Duties When Selecting Designated Investment Options,” RIN 1210-AC38. It is listed as a Final Rule with significant economic impact.
A few things not to confuse:
1. Under review ≠ in effect. The full final rule has not yet been published in the Federal Register, and its effective date has not been announced.
2. This is a procedural safe harbor for plan fiduciaries, not a requirement that every company’s 401(k) menu include crypto assets.
3. The March 31 proposed version stated that when selecting designated investment options, fiduciaries may use a prudent process based on six factors: performance, fees, liquidity, valuation, benchmarks, and complexity. Alternative assets (which, under the executive order’s definition, include actively managed investment vehicles that invest in digital assets) may also be included in the evaluation—but completing the process ≠ recommending that you buy.
What ordinary people can do: Don’t read “under White House review” as “you can go all in on crypto with your retirement account tomorrow.” Wait for the final rule to be published in the Federal Register, then check whether your plan’s menu includes these options and what restrictions apply.
