The US Department of Labor's proposed rule has passed White House review, which will determine whether retirement funds can invest in crypto assets

March 26 — The U.S. Department of Labor’s proposed rule targeting changes to investment options in the $10 trillion domestic 401(k) market has cleared White House regulatory review, moving one step closer to official release. The Office of Information and Regulatory Affairs (OIRA) finished its review of the rule on March 24, clearing the way for the Labor Department to formally publish the proposal in the coming weeks. If finalized, the rule would amend trustee guidance for plans covered by the Employee Retirement Income Security Act (ERISA), potentially allowing plan sponsors to include cryptocurrency and private equity among designated investment options. The proposal stems from an executive order signed by former President Donald Trump last year, which directed the Labor Department to make it easier for participant-directed defined contribution plans to include alternative assets. That executive order also instructed the U.S. Securities and Exchange Commission (SEC), the Treasury Secretary, and other federal agencies to explore ways to facilitate alternative investments — including digital assets — in retirement plans. During its review, OIRA categorized the rule as having an “economically significant” impact, triggering additional analysis under Executive Order 12866. This classification applies to regulations expected to have an annual economic impact of $100 million or more, or that substantially affect the economy. Per OIRA documents, the proposed rule has no statutory deadline.