US Labor dept's new proposed rule allows private equity, crypto in 401(k) plans — Here's all we know
The US Labor Department has proposed a rule to allow private equity and cryptocurrencies in 401(k) plans, potentially affecting $7.7 trillion in retirement savings. The proposal outlines a structured process for plan fiduciaries to evaluate alternative assets and provides safe harbor protections against lawsuits.
The US Labor Department proposed a rule to clarify how alternative assets like private equity and cryptocurrencies can enter 401(k) plans. The proposal aims to provide a framework for plan fiduciaries to make informed decisions. The rule does not instruct providers on how to invest, but rather gives them a process to follow. The Department of Labor will hold a 60-day public comment period before deciding whether to finalize the rule. The proposal could potentially send tens of billions of dollars into digital asset markets. Major financial players have welcomed the move, while some lawmakers have expressed concerns about exposing retirement savings to risky assets.
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