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NDBA - North Dakota Bankers Association
04/01/2026 | Press release | Distributed by Public on 04/01/2026 08:09
Proposed Rule Would Facilitate 401(K) Plan Investments in Private Equity, Crypto
The Labor Department is proposing to allow 401(k) plan managers to rely on a new rule that provides a safe harbor for investing in a broader range of alternative assets, including cryptocurrencies and private equity.
President Trump last year directed the Labor Department to explore allowing the use of cryptocurrency and other alternative asset investments in ERISA-governed 401(k) and other defined-contribution plans. The rule proposed would establish "a process-based safe harbor" for 401(k) plan fiduciaries when they select designated investment alternatives, according to the agency.
Specifically, the rule establishes six factors for fiduciaries to consider, relating to performance, fees, liquidity, valuation, performance benchmarks and complexity. "When a plan fiduciary does so following the process described in the proposed regulation with respect to any of the six factors, its judgment regarding the factor or factors is presumed to have met the fiduciary's duties under section 404(a)(1)(B) of ERISA," according to the Labor Department.
"This proposed rule will show how plans can consider products that better reflect the investment landscape as it exists today," Labor Secretary Lori Chavez-DeRemer said. "This greater diversity will drive innovation and result in a major win for American workers, retirees and their families."
Comments on the proposed rule are due 60 days after publication in the Federal Register.
To view the proposal, visit: https://www.federalregister.gov/documents/2026/03/31/2026-06178/fiduciary-duties-in-selecting-designated-investment-alternatives
President Trump last year directed the Labor Department to explore allowing the use of cryptocurrency and other alternative asset investments in ERISA-governed 401(k) and other defined-contribution plans. The rule proposed would establish "a process-based safe harbor" for 401(k) plan fiduciaries when they select designated investment alternatives, according to the agency.
Specifically, the rule establishes six factors for fiduciaries to consider, relating to performance, fees, liquidity, valuation, performance benchmarks and complexity. "When a plan fiduciary does so following the process described in the proposed regulation with respect to any of the six factors, its judgment regarding the factor or factors is presumed to have met the fiduciary's duties under section 404(a)(1)(B) of ERISA," according to the Labor Department.
"This proposed rule will show how plans can consider products that better reflect the investment landscape as it exists today," Labor Secretary Lori Chavez-DeRemer said. "This greater diversity will drive innovation and result in a major win for American workers, retirees and their families."
Comments on the proposed rule are due 60 days after publication in the Federal Register.
To view the proposal, visit: https://www.federalregister.gov/documents/2026/03/31/2026-06178/fiduciary-duties-in-selecting-designated-investment-alternatives
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