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The White House's Office of Information and Regulatory Affairs (OIRA) completed its interagency review of a proposed Department of Labor rule around March 24, clearing a significant procedural hurdle toward allowing cryptocurrencies and other alternative assets in U.S. employer-sponsored retirement plans. The proposed rule was submitted to OIRA on January 13, 2026, meaning the review took approximately 10 weeks and ran past the original executive order deadline of February 3, 2026. The rule, titled "Fiduciary Duties in Selecting Designated Investment Alternatives," now returns to the Labor Department for formal publication and a public comment period before any final version can take effect.

The 401(k) market holds an estimated $10 to $14 trillion in assets across more than 90 million American workers. Currently, only a small number of providers, including Fidelity and ForUsAll, offer any crypto exposure in these plans, and those offerings are typically capped and limited to Bitcoin or Ethereum.

What the Rule Would Actually Do

The proposed rule is structured as a safe harbor framework rather than a requirement compelling employers to offer crypto in retirement plans. It would provide fiduciary "safe harbor" protections to plan sponsors who choose to include alternative assets such as Bitcoin, private equity, private credit, real estate, infrastructure, and lifetime income strategies.

A safe harbor, in this context, means employers who follow prescribed due diligence standards would have stronger legal defenses against participant lawsuits if those investments underperform or generate claims of excessive fees.

OIRA clearance signals broad alignment across federal agencies, but the rulemaking process has several stages remaining. After the DOL's Employee Benefits Security Administration publishes the proposal, a standard public comment period of roughly 60 days follows before a final rule can be written.

Kelsey Mayo, Chief of Retirement Policy at the American Retirement Association, described the development in measured terms: "The Office of Management and Budget's return of the proposed rule to DOL is an important procedural step in the rulemaking process. It means the proposal has cleared interagency review and is now ready for the DOL to move forward with publication."

A Four-Year Policy Reversal

The current proposal is the latest move in a sharp regulatory pivot that began when the Trump administration took office for its second term. In 2022, the Biden-era DOL warned plan fiduciaries to exercise "extreme care" before adding cryptocurrency to any 401(k) investment menu, citing volatility, fraud risk, and uncertain regulation. That guidance had a chilling effect on employer interest in crypto retirement options.

On May 28, 2025, the Trump DOL rescinded the 2022 guidance in full via Compliance Assistance Release No. 2025-01, reverting to a standard that treats crypto under the same general prudence principles as any other investment.

On August 7, 2025, President Trump signed an executive order titled "Democratizing Access to Alternative Assets for 401(k) Investors," directing the DOL to reexamine fiduciary duty rules around alternative assets and framing the issue as one of economic equity: that ordinary workers should have access to the same investment options available to public pension funds and large institutional investors.

On a parallel legislative track, Representative Troy Downing (R-MT) reintroduced the Financial Freedom Act, which would bar plan fiduciaries from restricting crypto access in self-directed brokerage windows. Downing also introduced a separate bill specifically to codify the executive order into law. Together, the two measures provide alternative legislative paths to enshrining the policy change if the rulemaking process stalls.

The Volatility Problem Has Not Gone Away

The timing of this regulatory advance is complicated by recent market history. Bitcoin fell roughly 50% from its October 2025 peak through February 2026. The February 2026 rout alone contributed to an estimated $2 trillion loss in U.S. crypto market value during that period. Bitcoin has since recovered to approximately $71,300, with a market capitalization near $1.33 trillion and a circulating supply that crossed the 20 million coin threshold in March 2026.

Critics argue the volatility record makes retirement savings an inappropriate context for the asset class. Those concerns were voiced most directly during the February 2026 crash, before Bitcoin's partial recovery. Lee Reiners of the Duke Financial Economics Center stated at the time: "401ks exist to help people save for a secure retirement, not gamble on speculative assets." Reiners also noted that legal exposure remains a practical barrier even now: "Plan sponsors are unlikely to include crypto because they don't want to be sued by their employees."

Global Signals Beyond U.S. Borders

The U.S. rulemaking carries implications for markets where crypto adoption is already widespread but institutional frameworks remain absent. India ranks first in the 2026 Global Crypto Adoption Index with more than 100 million estimated users; Nigeria ranks second. South and Central Asia saw a 78% rise in centralized exchange volumes and a 236% surge in retail stablecoin transfers year over year. Sub-Saharan Africa posted 180% growth in stablecoin activity and 184% growth in DeFi and Layer 2 usage.

Neither India's Employees' Provident Fund Organisation nor its National Pension System has a formal pathway for crypto. India's 30% flat tax on crypto gains continues to suppress domestic institutional engagement while driving retail activity to offshore platforms, and regulators including the Securities and Exchange Board of India (SEBI) and the Pension Fund Regulatory and Development Authority (PFRDA) could face mounting pressure to respond if the U.S. framework is finalized. Nigeria's pension regulator, PENCOM, oversees a scheme covering roughly 10 million formal workers without any digital asset guidance in place. In East Africa, Kenya's Retirement Benefits Authority has begun exploring digital asset regulations, a posture that distinguishes it from Nigeria's current approach.

If the U.S. establishes a fiduciary framework with defined standards for crypto inclusion, including volatility disclosures and allocation limits, regulators in these markets may face growing pressure to respond. Pakistan, which ranks eighth in the 2026 Global Crypto Adoption Index, offers a useful illustration of that gap. The country established its Virtual Asset Regulatory Authority (VARA) in 2024, but that body's mandate covers exchange licensing only and does not extend to pension or provident fund integration.

The trend also appears to be moving beyond Washington. HostPlus, Australia's third-largest pension fund by membership with $96 billion under management, confirmed in late March that it is actively considering crypto exposure for its members. Sam Sicilia, Chief Investment Officer of HostPlus, offered a measured outlook: "We'd love to get regulatory tick-off, even if it means waiting another six months. We are long-term investors." That signals the U.S. proposal is part of a broader institutional reassessment, not a purely domestic political decision.

What Comes Next

The DOL is expected to publish the proposed rule in the Federal Register in the coming weeks, opening the 60-day window for public comment from employers, asset managers, consumer advocates, and retirement industry stakeholders. A final rule could follow later in 2026, though the timeline may shift depending on the volume and nature of comments received.