Sens. Bernie Sanders, Elizabeth Warren Push Labor Dept. to Scrap Proposed Rule that Brings Crypto Into 401 Plans
The lawmakers say the change would weaken investor protections and expose the $14.2 trillion retirement market to riskier, costlier assets.
- On Monday, Sens. Elizabeth Warren and Bernie Sanders , alongside Rep. Bobby Scott , urged Acting Labor Secretary Keith Sonderling to withdraw a proposal allowing 401 retirement plans to include cryptocurrency and other alternative assets.
- This proposed rule stems from an executive order signed by President Donald Trump last year, which directed the Labor Department and Securities and Exchange Commission to facilitate access to alternative assets for participant-directed retirement savings plans.
- Lawmakers argued the rule could expose an estimated $14.2 trillion in American retirement savings to increased financial risks, citing FBI data showing crypto-linked fraud losses reached a record high of over $11 billion in 2025.
- Critics, including the Democracy Defenders Fund, flagged potential conflicts of interest, noting Trump and his family could personally profit from the rule change given their ties to cryptocurrency and the World Liberty Financial token.
- Benjamin Schiffrin, director of securities policy for Better Markets, called the proposal 'exactly the wrong approach at the wrong time,' while the Labor Department confirmed it is reviewing the lawmakers' letter.
12 Articles
12 Articles
Sanders and Warren Urge Labor Department to Scrap Proposed Crypto 401(k) Rule as Comment Period Closes
Senators Bernie Sanders (I-VT) and Elizabeth Warren (D-MA), joined by Rep. Bobby Scott (D-VA), ranking member of the House Committee on Education and Workforce, sent a 14-page letter Monday to Acting Labor Secretary Keith Sonderling urging the Department of Labor to scrap the proposed Fiduciary Duties in Selecting Designated Investment Alternatives rule that would open 401(k) plans to cryptocurrencies and other alternative assets. The Labor Depa…
Top Democrats rip proposal allowing digital assets in 401(k) plans
Top Democratic lawmakers are urging the Department of Labor to withdraw a proposal that would make it easier for retirement plans to offer investments in cryptocurrency, private equity and other “alternative assets,” arguing that the move could expose workers’ savings to greater financial risks and higher fees. In a letter sent Monday to acting Labor…
US fund managers support 401(k) access to alternatives
Major US fund management firms are backing a proposal that would allow retirement savers to allocate portions of their 401(k) plans into alternative assets such as private credit and cryptocurrencies, according to a report by Reuters. Investor groups and advisers though, are warning that the move could expose individuals to higher risk, fees and liquidity constraints. The proposal, introduced by the US Department of Labor, would create a “safe h…
Democrats push Labor Department to scrap crypto 401(k) proposal
Three senior Democratic lawmakers have called on the U.S. Labor Department to withdraw a proposal that could open the country’s roughly $10.1 trillion 401(k) retirement market to cryptocurrencies and other alternative investments. According to a letter sent Tuesday by Senator…
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