Source publication time: Nov. 7, 2026, at 04:04:27 UTC+8. This article reflects the proposal and expert assessments reported at that time.
A proposed US Labor Department rule could allow smaller cryptocurrencies into 401(k) retirement plans, but it would not guarantee their inclusion. The main constraints described by experts are investment suitability, liquidity, reliable valuation and the operational work required to support crypto—not an explicit market-cap cutoff.
According to the Office of Information and Regulatory Affairs, the proposal reached the White House for final review on Thursday. It aims to make alternative investments, including crypto, easier to offer in retirement plans while providing greater legal protection for employers and plan managers.
No token list or minimum market cap
The Labor Department’s March proposal does not specify eligible digital assets or establish a minimum market capitalization. Instead, it directs plan managers to assess six factors:
- Performance
- Fees
- Liquidity
- Valuation
- Benchmarks
- Complexity
Teresa Goody Guillén, managing partner at Bellementis PLLC, said Bitcoin and Ether would likely be offered first because they have established markets and investment products. CoinGecko data cited in the report put their market capitalizations at approximately $1.5 trillion for Bitcoin and $273 billion for Ether, as of 20:01 UTC on Nov. 6, 2026. They were the two largest cryptocurrencies by that measure.
Guillén said those market sizes do not automatically exclude smaller assets. Plan managers would still need to demonstrate that their selections meet retirement-investment standards for prudence, liquidity, valuation and investor protection.
“Big doesn’t mean suitable, and small doesn’t mean disqualified,” she said.
Bernardo Brites, co-founder and CEO of Trace Finance, offered a more restrictive assessment. In his view, Bitcoin and Ether meet the proposed tests, while other tokens fall short on track record or benchmarks before market capitalization becomes decisive. He emphasized whether a plan committee can document a reliable daily price through a regulated investment wrapper.
These are expert assessments of likely selection decisions, not a regulatory whitelist or ban on smaller tokens.
Funds may arrive before direct holdings
The proposal does not restrict crypto exposure to exchange-traded funds or managed funds. Nevertheless, Guillén expects those products to come first because they fit existing custody and recordkeeping systems.
Direct holdings would raise additional storage, cybersecurity and pricing concerns, she said, though those risks should not automatically disqualify them.
Brites also expects a gradual rollout: existing brokerage options first, followed by standalone ETFs and funds with small crypto allocations. His forecast was for some options to become available in 2027, ETFs at larger employers later that year, and broader availability in retirement funds by 2028. Those dates are his expectations, not an implementation schedule established by the proposal.
“The rule changes the legal risk, not the plumbing, and the plumbing is slower,” Brites said. He noted that White House review can take up to 90 days, followed by publication and an effective date typically 60 days later.
Legal protection would not eliminate legal risk
Brites said the proposal would give plan managers some protection from lawsuits without preventing challenges to their investment decisions. He also warned that a future administration could reverse the rule, potentially discouraging employers from adding crypto to long-term plan designs.
He pointed to the reversal of the 2022 guidance in 2025 and said the weight courts would give the proposed safe harbor remains unsettled as courts give agencies less deference.
The proposal therefore represents a possible expansion of retirement-plan access, not evidence that plans have committed funds or selected particular tokens. The report’s adoption outlook remains conditional on final rules, fiduciary decisions, legal durability and implementation capacity.