# 401(k) Proposal Leaves Digital-Asset Types Open, but Lower-Market-Cap Tokens Face Hurdles

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/55492
Published: 2026-11-12T14:20:26.000Z
Updated: 2026-11-12T14:20:26.000Z
Section: Regulation

> The U.S. Department of Labor’s March proposal would have plan administrators assess investment risks across six factors, including liquidity and valuation.

A U.S. Department of Labor proposal to make it easier for retirement plans to include crypto and other alternative investments reached final White House review Thursday, Nov. 12, bringing the measure closer to a decision on 401(k) options.

The proposal went to the White House Office of Management and Budget (OMB) for final review. Issued in March, it aims to simplify the process for adding alternative investments and provide employers and plan administrators with some legal protection.

The measure does not limit eligible digital-asset types or establish a minimum market capitalization. Plan administrators would still have to evaluate investment risks across six areas: performance, fees, liquidity, valuation, benchmarks and complexity.

Teresa Goody Guillén, managing partner at Bellementis PLLC, said Bitcoin (BTC) and Ether (ETH) could be considered earlier than other tokens because their markets and investment products are more developed. She said altcoins are not automatically excluded, but would still need to meet standards for prudent investing, liquidity, valuation and investor protection.

Trace Finance co-founder and CEO Bernardo Brites said tokens with smaller market capitalizations could have a harder time with reviews of past performance and benchmarks.

The proposal does not require crypto exposure to be held through an exchange-traded fund or managed fund. Guillén expects those investment products to reach 401(k) plans before direct crypto holdings.