Trump-Backed Proposal Would Allow Cryptocurrency in 401(k) Plans

A proposal from the U.S. Department of Labor could change what's inside your 401(k) plan by allowing employers to include alternative investments like private equity, real estate, and cryptocurrency.

The move is tied to an executive order from Donald Trump and aims to give everyday investors access to strategies used by wealthy individuals and institutional investors.

Backers of the proposal argue that adding a small slice of alternative assets could improve long-term returns or help protect against inflation, while critics warn it could introduce new risks for investors.

The Department of Labor has proposed a 'safe harbor' framework to protect fiduciaries who select investments, which could make employers more comfortable offering a wider range of options.