White House Clears Path for Crypto and Bitcoin in $14T 401(k) Plans

The US White House has completed its review of the proposal to allow cryptocurrencies, including Bitcoin (BTC) and private equity exposure in 401(k) retirement plans.

The proposal now awaits formal ruling from the Department of Labor (DOL). A positive ruling would support the flow of $13.9 trillion from defined-contribution plans, such as 401(k), into cryptocurrency investments. 

This development would further reinforce the legitimacy of the blockchain and cryptocurrency industry, possibly driving higher demands and breaking recent price consolidation in favor of a bullish reversal.

Bitcoin inclusion in retirement portfolios

The clearance from White House comes after an August 2025 executive order asking the DOL to ease restrictions on alternative assets. The latter spans private equity, real estate,  infrastructure, commodities, and cryptocurrencies.

While Bitcoin inclusion in 401(k) plans is already legal under the Employee Retirement Income Security Act (ERISA) of 1974, a positive review from the DOL would shift the DOL’s crypto stance away from “extreme care.”

By contrast, the former Biden administration warned against integrating cryptocurrency into retirement plans, saying volatility could wipe out entire funds and threaten economic stability.

This stance shifted in May 2025 in line with the Trump administration’s aspirations to make America a global hub for Bitcoin and cryptocurrency.

Community reaction on crypto retirement plans

The move to integrate Bitcoin and crypto into retirement portfolios has elicited divergent reactions within the community. Supporters highlight increased accessibility to high-yield digital assets, with financial gains offsetting inflationary effects on the value of fiat.

Critics note that uptake may be lower because retirement firms prioritize stable gains over speculative ones or illiquid investments like private equity.

What happens next?

Currently, the DOL maintains a neutral stance on the inclusion of crypto in retirement plans. Once it issues its upcoming ruling, a public commentary period would follow, and thereafter a final ruling.

A positive verdict would provide legal protection to fiduciaries, preventing them from being investigated or sued for including Bitcoin.

Nonetheless, the integration may take some time as retirement firms assess the benefits of such investments and develop the necessary infrastructure to support them.