Originally published by Cointelegraph on Nov. 7, 2026, at 04:04:27 UTC+8.
A proposed US Labor Department rule could leave room for smaller cryptocurrencies in 401(k) retirement plans. But eligibility would not guarantee access: plan managers would still need to justify their choices, and experts quoted by Cointelegraph expect Bitcoin and Ether to have an easier path.
At the time of the report, the proposal had reached the White House for final review on Thursday, according to the Office of Information and Regulatory Affairs. It sought to make alternative investments, including crypto, easier to offer while providing employers and plan managers with greater legal protection.
No token whitelist—and no automatic approval
The Labor Department’s March proposal did not name eligible digital assets or impose a minimum market capitalization. Instead, it directed retirement plan managers to assess six factors: performance, fees, liquidity, valuation, benchmarks and complexity.
That leaves the door open to altcoins without establishing that any particular token is suitable for retirement savings.
Teresa Goody Guillén, managing partner at Bellementis PLLC, said Bitcoin and Ether would likely come first because of their established markets and investment products. CoinGecko data cited in the report put their market capitalizations at approximately $1.5 trillion and $273 billion, respectively, as of 20:01 UTC on Nov. 6.
But size alone should not determine suitability, Guillén said: “Big doesn’t mean suitable, and small doesn’t mean disqualified.” She argued that digital assets should meet the same standards of prudence, liquidity, valuation and investor protection as other retirement investments, without receiving special treatment or being excluded because of their technology.
Bernardo Brites, co-founder and CEO of Trace Finance, offered a stricter assessment. In his view, Bitcoin and Ether could meet the proposed tests, while other tokens would fail on track record or benchmarks before market capitalization became relevant. He said a practical hurdle would be whether a plan committee could document a reliable daily price through a regulated investment wrapper.
Those are expert assessments, not a regulatory decision approving or excluding specific cryptocurrencies.
Funds could arrive before direct holdings
The proposal did not restrict crypto exposure to exchange-traded funds or managed funds. Nevertheless, both experts expected fund-based access to precede direct ownership.
Guillén said ETFs and managed funds fit existing custody and recordkeeping systems. Direct holdings would introduce additional storage, cybersecurity and pricing concerns, though she said those risks should not automatically disqualify them.
Brites expected a gradual rollout, starting with existing brokerage options, followed by standalone ETFs and funds with small crypto allocations. He forecast some crypto investment options in 2027, ETFs at larger employers later that year, and potentially broader retirement-fund availability by 2028. These were projections, not confirmed launch dates.
“The rule changes the legal risk, not the plumbing, and the plumbing is slower,” Brites said. He noted that White House review could take up to 90 days, followed by publication and an effective date typically 60 days later.
Legal protection would still have limits
The proposed protections would not stop plan managers from being sued over investment decisions, Brites cautioned. He also pointed to the possibility of a future administration reversing the rule, noting that 2022 guidance had been reversed in 2025.
With courts giving agencies less deference, he added, the weight of the proposed safe harbor in litigation remained unsettled.
The distinction is straightforward: the proposal could create a route for crypto in retirement plans, including smaller tokens, but it would not ensure adoption. Investment suitability, operational readiness and legal uncertainty would still shape what employers actually offer.