Trending Now - Senators Raise Alarm Over Crypto Inclusion in 401(k) Plans
WHO:
Cointelegraph - Senators Bernie Sanders, Elizabeth Warren, and House education and workforce committee ranking member Bobby Scott of Virginia are involved in opposing the proposal.
NewsBTC - The U.S. Department of Labor (DOL) is the agency proposing the inclusion of crypto in 401(k) plans.
NewsBTC - Labor Secretary’s acting counterpart Keith Sonderling and Treasury Secretary Scott Bessent are defending the proposal.
WHAT:
NewsBTC - The proposed rule would allow fiduciaries to offer volatile assets, including cryptocurrency, private equity, and private credit, in 401(k) plans, provided they demonstrate they considered relevant factors.
Bitcoin Magazine - The proposed rule stems from an executive order signed by Trump, directing the Labor Department to revisit its approach to alternative assets in retirement plans.
Bitcoin Magazine - The Democrats argue that the new rule would flip the fiduciary standard, presuming due diligence instead of requiring it, which they claim conflicts with decades of legal precedent.
Bitcoin Magazine - The lawmakers highlighted that Trump's adult sons manage the family’s crypto business, which has raised an estimated $5 billion for the Trump family following the launch of their digital currency.
Bitcoin Magazine - The family’s crypto portfolio includes World Liberty Financial’s WLFI and USD1 tokens, as well as the official Trump meme coin, which surged past $75 per token at Trump’s January 2025 inauguration before collapsing to around $2.
Decrypt - Senators Bernie Sanders and Elizabeth Warren sent a 14-page letter to Acting Labor Secretary Keith Sonderling urging the Labor Department to reconsider a pending rule that would allow fiduciaries to offer riskier assets like Bitcoin in retirement plans.
Decrypt - The proposed rule would grant fiduciaries immunity to offer volatile assets, which the lawmakers argue violates longstanding requirements established by the Supreme Court and the 1974 Employee Retirement Income Security Act (ERISA).
NewsBTC - The lawmakers claimed that the change could directly benefit President Trump by exposing digital assets issued by him and his family to a larger market.
Cointelegraph - The proposal aims to allow allocations to crypto assets in 401(k) retirement accounts.
NewsBTC - The lawmakers estimate that the proposal could place approximately $14.2 trillion in 401(k) savings at risk.
NewsBTC - The Financial Industry Regulatory Authority (Finra) has cautioned that crypto investments have experienced higher levels of volatility compared to traditional assets.
NewsBTC - Americans reported over $11 billion in losses due to cryptocurrency fraud in 2025.
WHERE:
NewsBTC - The proposal is being discussed in the context of U.S. retirement savings plans.
WHEN:
NewsBTC - The lawmakers warned that the proposal likely would not survive a court challenge.
WHY:
NewsBTC - The lawmakers argue that the proposed rule could enrich Trump and his family by expanding access to crypto products tied to them.
NewsBTC - The lawmakers argue that the proposed rule could enrich President Trump and his family by expanding access to crypto products tied to them.
Cointelegraph - The lawmakers argue that the volatility of digital assets and lack of regulation could jeopardize Americans' retirement savings.
NewsBTC - The proposal is seen as stripping long-held investor protections and encouraging riskier investments.
HOW:
Bitcoin Magazine - The proposed rule would allow fiduciaries to offer access to volatile assets as long as they follow a process outlined in the rule.
Decrypt - The Labor Department's proposed rule would presume due diligence on the part of fiduciaries instead of requiring it, which the lawmakers argue is a weakening of fiduciary standards.
NewsBTC - The DOL's rule requires managers to evaluate potential product offerings by following a prudent process.
(UPDATED June 3, 2026 12:36 UTC)
A new proposed rule would enable fiduciaries to include volatile assets like cryptocurrency and private equity in 401(k) plans, provided they demonstrate they have considered relevant factors. This rule is a result of an executive order signed by Trump, which directed the Labor Department to reassess its stance on alternative assets in retirement plans. However, Democrats argue that the rule could undermine fiduciary standards and potentially benefit Trump and his family, who have significant investments in the crypto market.
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(UPDATED June 3, 2026 04:24 UTC)
Senators Bernie Sanders and Elizabeth Warren have sent a 14-page letter to Acting Labor Secretary Keith Sonderling, urging the Labor Department to reconsider a proposed rule that would allow fiduciaries to include riskier assets like Bitcoin in retirement plans. They argue that this rule could violate longstanding legal requirements and potentially enrich President Trump and his family by exposing their digital assets to a larger market. The lawmakers are concerned that the rule would weaken fiduciary standards by presuming due diligence rather than requiring it.
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(UPDATED June 3, 2026 01:53 UTC)
Senators Bernie Sanders and Elizabeth Warren, along with House education and workforce committee ranking member Bobby Scott, are opposing a proposal from the U.S. Department of Labor that aims to allow allocations to cryptocurrency in 401(k) retirement accounts. The lawmakers estimate this proposal could put approximately $14.2 trillion in 401(k) savings at risk, citing concerns over the volatility of digital assets and the potential stripping of long-held investor protections. Labor Secretary Keith Sonderling and Treasury Secretary Scott Bessent are defending the proposal, which has drawn warnings from the Financial Industry Regulatory Authority about the risks associated with crypto investments.