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Trump Administration Proposes 401(k) Rule for Risky Assets

4/1/2026

Summary

Trump's 401(k) Proposal

The Labor Department under U.S. President Donald Trump proposed a rule to let 401(k) plans include private equity and cryptocurrencies, potentially affecting more than 90 million Americans.
The proposal would ease legal barriers and provide fiduciaries a safe harbor from lawsuits when adding these assets.
Critics, including consumer advocacy groups, warn of high risks and fees, calling it a 'Ponzi-like scheme,' and say the public comment period is 60 days.

Summary

Trump's 401(k) Expansion

The U.S. Department of Labor proposed a rule to let 401(k) plans include alternatives like cryptocurrencies and private equity, with a 60-day public comment period.
The proposal follows U.S. President Donald Trump’s executive order to expand retirement investment options.
It would create a safe harbor for fiduciaries who follow structured evaluation processes for these assets.
Critics, including Senator Elizabeth Warren (D-Mass.), warn the move could expose retirement savings to risk.

History

Historical Context

The Employee Retirement Income Security Act (ERISA) was enacted in 1974 to establish minimum standards for private pension plans, ensuring the protection of American workers' retirement benefits. Following significant pension crises, including the Studebaker Corporation's 1963 bankruptcy, ERISA introduced fiduciary responsibilities for plan managers. The recent Labor Department proposal to include private equity and cryptocurrencies in 401(k) plans reflects ongoing changes in investment strategies since ERISA's implementation.

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Trump's 401(k) Proposal

The Labor Department under U.S. President Donald Trump proposed a rule to let 401(k) plans include private equity and cryptocurrencies, potentially affecting more than 90 million Americans.
The proposal would ease legal barriers and provide fiduciaries a safe harbor from lawsuits when adding these assets.
Critics, including consumer advocacy groups, warn of high risks and fees, calling it a 'Ponzi-like scheme,' and say the public comment period is 60 days.

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