Story perspectives

Sanders, Warren Push Labor to Drop Crypto-401(k) Rule

6/3/2026

Summary

Progressives Block Crypto

Sen. Bernie Sanders (VT), Sen. Elizabeth Warren (MA) and Rep. Bobby Scott (VA) urged Labor Department to withdraw its crypto-401(k) proposal.
They warn the rule could expose $14.2 trillion in U.S. retirement savings, cite the FBI’s 2025 $11 billion fraud report, Trump-coin fall from $73 to $2 and a $5 billion gain for President Donald Trump’s family.
Labor Department will decide after June 1 comment period whether to finalize, revise or drop the rule.

Summary

Administration Expands

The administration proposed expanding 401(k) assets beyond crypto to private equity and credit.
Keith Sonderling said the rule gives workers more options while Scott Bessent called it a step toward President Donald Trump’s “Golden Age”.
Benjamin Schiffrin warned that private-credit 401(k) investments are the wrong approach.
Critics say the rule may violate the Employee Retirement Income Security Act and note a $5 billion crypto-venture estimate since September.

History

Historical Context

After the 2008 financial crisis, Congress passed the Dodd-Frank Act, signed on July 21 2010, to tighten oversight of retirement-plan investments in the United States. Today, Senators Bernie Sanders and Elizabeth Warren, with Rep. Bobby Scott, warn that the Labor Department’s proposed crypto-401(k) rule could jeopardize the $14.2 trillion retirement pool, echoing earlier concerns about unchecked alternative-asset exposure.

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Progressives Block Crypto

Sen. Bernie Sanders (VT), Sen. Elizabeth Warren (MA) and Rep. Bobby Scott (VA) urged Labor Department to withdraw its crypto-401(k) proposal.
They warn the rule could expose $14.2 trillion in U.S. retirement savings, cite the FBI’s 2025 $11 billion fraud report, Trump-coin fall from $73 to $2 and a $5 billion gain for President Donald Trump’s family.
Labor Department will decide after June 1 comment period whether to finalize, revise or drop the rule.

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