The Blockchain Association has formally endorsed a proposed rule from the U.S. Department of Labor (DOL) that could make it easier for 401(k) retirement plans to offer investment options with exposure to digital assets.
In a June 1 comment letter submitted to the DOL, the industry group argued that retirement plan fiduciaries should be allowed to evaluate crypto-related investments under the same standards applied to other asset classes, rather than facing additional restrictions specific to digital assets.
The proposal centers on fiduciary duties under the Employee Retirement Income Security Act (ERISA) and follows the administration’s broader effort to expand access to alternative investments within retirement accounts.
Industry group supports asset-neutral retirement rules
The Blockchain Association said the proposed rule reinforces a long-standing principle of ERISA: that fiduciaries should assess investments through a prudent decision-making process rather than by favoring or excluding specific asset classes.
According to the organization, the rule would allow plan sponsors to consider funds with digital asset exposure when they determine such investments are appropriate for participants’ retirement objectives and risk profiles.
The group argued that crypto-related investments should not be treated differently from other alternative assets, particularly as digital assets have become increasingly integrated into regulated financial markets through exchange-traded products, custodial services, and institutional investment strategies.
Debate shifts from crypto bans to fiduciary oversight
The proposal marks a departure from guidance issued by the Labor Department in 2022 that urged fiduciaries to exercise “extreme care” before including cryptocurrency investments in retirement plans. The guidance was withdrawn in 2025, with the department stating that the heightened standard was not found in ERISA itself.
The new proposal instead focuses on whether fiduciaries follow a prudent and well-documented evaluation process when selecting investment options. Under this framework, digital assets would neither be favored nor prohibited, leaving investment decisions to plan fiduciaries.
The Blockchain Association said this approach better aligns with ERISA’s asset-neutral structure and provides retirement investors access to a broader range of investment opportunities.
Crypto exposure gains institutional acceptance
In its filing, the association pointed to the growing participation of institutional investors in digital asset markets. The group noted that spot Bitcoin exchange-traded products now manage significant assets and that major financial institutions, pension funds, endowments, and public companies have increased their exposure to digital assets in recent years.
The letter also cited the evolving regulatory landscape, including the enactment of the GENIUS Act and ongoing congressional efforts to establish a broader market structure framework for digital assets.
According to the association, these developments have helped move digital assets further into mainstream financial markets and strengthened the case for allowing retirement plans to evaluate crypto-related investment options under existing fiduciary standards.
Support comes as Congress advances crypto legislation
The comment letter arrives as lawmakers continue work on broader digital asset legislation, including the Senate’s consideration of the CLARITY Act, which aims to establish regulatory rules for cryptocurrency markets.
While the Labor Department proposal does not require retirement plans to offer crypto exposure, it would clarify that fiduciaries may consider such investments if they conclude they meet ERISA’s prudence requirements.
The Blockchain Association said retirement investors should have access to the same categories of investments available to institutional and professional investors, provided fiduciaries appropriately evaluate risks, costs, diversification benefits, and long-term suitability.
For now, the proposal remains under review, with the Labor Department collecting public comments before determining whether to finalize the rule.
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