US 401(k) proposal leaves door open to altcoins, but hurdles remain

While the proposal doesn’t exclude altcoins and smaller cryptocurrencies, experts say they could face challenges getting into retirement plans.

Smaller cryptocurrencies could become available in US 401(k) retirement plans under a proposed Labor Department rule, but experts say they may face more challenges than Bitcoin (BTC) and Ether (ETH).

The rule reached the White House for final review on Thursday, according to the Office of Information and Regulatory Affairs. It aims to make it easier for retirement plans to offer alternative investments like crypto, while offering more legal protection for employers and plan managers.

The Labor Department’s March proposal neither specifies which digital assets could be included nor sets a minimum market capitalization requirement. However, it does guide retirement plan managers to consider six factors when choosing: performance, fees, liquidity, valuation, benchmarks and complexity.

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