White House review nears for rule allowing Bitcoin in 401(k) plans
A proposed rule from the Labor Department that could pave the way for including Bitcoin in 401(k) retirement plans is currently undergoing a final review by the White House. The rule, identified as RIN 1210-AC38, has been with the Office of Information and Regulatory Affairs (OIRA) since September 28, 2026, and a decision is anticipated around the end of 2026, following a standard 90-day review period.
This review represents the last step before the rule can be formally published. The initiative stems from an August 2025 executive order directing the Labor Department to clarify guidance on cryptocurrencies and private markets within 401(k) plans. Previously, in May 2025, the department rescinded Compliance Assistance Release No. 2022-01, which advised fiduciaries to exercise “extreme care” when considering crypto investments.
The proposed rule, released on March 31, 2026, introduces a “safe harbor” provision designed to protect employers from legal challenges. This provision presumes prudent investment choices under ERISA, the federal law governing retirement plans, if employers thoroughly evaluate factors like performance, fees, and liquidity. While employers retain control over investment options, plan committees must approve any Bitcoin fund before savers can invest.
The most likely avenues for Bitcoin inclusion would be through self-directed brokerage windows or smaller allocations within target-date funds, which are utilized by 84% of Vanguard participants as of 2024. A Goldman Sachs survey indicated that 45% of plan sponsors are considering incorporating private market strategies, including cryptocurrencies, into these funds.
As of June 30, 2026, U.S. 401(k) plans held a total of $10.8 trillion. Even a 1% allocation to Bitcoin would represent approximately $108 billion, exceeding the $96 billion currently held in all U.S. spot Bitcoin ETFs as of November 6. However, a significant portion of this wealth is concentrated among wealthier households.
While some plans might introduce Bitcoin exposure as early as 2027, widespread adoption is unlikely that year. Given Bitcoin’s 13.6% decline in 2026, cautious committees may delay action until more data is available. Savers interested in early access should explore whether their plan offers a self-directed brokerage window. If the rule is approved and legal challenges are resolved, Bitcoin investments could begin flowing through these windows in 2027. Otherwise, broader inclusion within target-date funds may not occur until 2028 or later. The recent price volatility of Bitcoin, which has fallen 40% from its peak in October 2025, underscores the importance of maintaining a diversified portfolio and avoiding overexposure to any single asset.
Source
“The 401(k) Crypto Rule Is in Its Final White House Review. Could Retirement Money Start Flowing Into Bitcoin in 2027?”
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