Two US Senators Push Labor Department to Rescind Proposed Rule on Including Cryptocurrencies in 401(k) Plans

On June 3, according to The Block, U.S. Senators Bernie Sanders and Elizabeth Warren, along with Representative Robert Scott, have sent a letter to the Department of Labor demanding the withdrawal of a proposed rule that would allow 401(k) retirement plans to include alternative assets such as cryptocurrencies. In their letter, the lawmakers stated that the proposed rule would create a so-called safe harbor for fiduciaries offering alternative investments, which would strip retirement savers of long-standing investor protections and encourage the use of riskier, more complex, and more expensive investments. The Department of Labor published the proposed rule in March, providing guidance steps for 401(k) plan administrators to include alternative assets, including private equity, real estate, and digital assets, in their investment portfolios. The lawmakers expressed concerns about the volatility of digital assets, citing a Federal Bureau of Investigation report indicating that crypto-related fraud losses exceeded a record $11 billion in 2025. They also pointed to potential conflicts of interest within the Trump family regarding cryptocurrency, suggesting that the Department of Labor's proposed rule could advance the president's interests at the expense of ordinary workers and retirees.