The 2025 Trump Executive Order on Crypto in 401(k) Plans

The August 7, 2025 executive order ordered DOL, Treasury, and SEC to re-examine the rules limiting alternative assets — including crypto — inside 401(k) plans.

Updated June 2026 · Educational only, not financial advice

The order tells federal agencies to rewrite the guidance that scared 401(k) plan sponsors away from crypto — but plans aren't required to offer it

DOL Compliance Assistance Release 2025-01 already rescinded the Biden-era "exercise extreme care" warning. The EO formalizes the shift but ERISA fiduciary duty still binds plan sponsors.

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About this topic

The August 7, 2025 Trump executive order, "Democratizing Access to Alternative Assets for 401(k) Investors," directs the Department of Labor, Treasury, and SEC to reexamine guidance that has discouraged 401(k) plans from offering alternative assets including crypto, private equity, and real estate. It does not require any plan to add these assets. This is educational only, not financial advice.

The order builds on a quieter change from earlier in 2025. On May 28, 2025, the DOL issued Compliance Assistance Release 2025-01, which formally rescinded the Biden-era 2022 guidance that warned fiduciaries to "exercise extreme care" before adding cryptocurrency to a 401(k) menu. That rescission moved the regulatory dial from skeptical to neutral.

The August order goes further. It tells the DOL to clarify its position on alternative assets in participant-directed defined contribution plans within 180 days, and to consider proposing a fiduciary safe harbor. It also tells Treasury and the SEC to coordinate on parallel rule changes.

What hasn't changed: ERISA fiduciary duty still binds plan sponsors. They must act prudently and in participants' sole interest. No plan is required to add crypto, private equity, or real estate, and the order itself does not shield sponsors from lawsuits.

What is actually shipping today is narrow. Fidelity's Digital Assets Account, launched in late 2022, remains the only direct Bitcoin offering inside a 401(k) at scale, and it requires the employer to opt in. Most plan sponsors are waiting for the final DOL rule before changing anything.

How it actually works

The order works by directing federal agencies to revise sub-regulatory guidance, not by writing new law. Congress did not pass anything. The president signed a directive telling DOL to reexamine its fiduciary guidance on alternative assets, and Treasury and SEC to coordinate on any needed rule changes. That process runs through agency rulemaking, which is slower than a headline suggests.

Step one already happened. On May 28, 2025, the DOL issued Compliance Assistance Release 2025-01, formally rescinding the 2022 release. The 2022 guidance had told fiduciaries to exercise extreme care before adding cryptocurrency. The 2025 release returns plan sponsors to the neutral, principles-based standard in ERISA section 404, which requires prudence and loyalty.

Step two is the August 7, 2025 executive order. It gives DOL 180 days to clarify its position on alternative assets in participant-directed defined contribution plans. It defines alternatives broadly: private equity, private credit, real estate, infrastructure, digital assets, commodities, and lifetime income products. DOL must coordinate with Treasury and the SEC, and may propose a safe harbor.

Step three has not happened. No final DOL rule exists yet. ERISA fiduciary duty still applies in full. A plan sponsor who adds Bitcoin to the core menu without proper diligence can still be sued by participants, and the executive order does not provide a liability shield.

In practice, most large recordkeepers are watching, not moving. Fidelity is the only major one with a direct Bitcoin 401(k) product (the Digital Assets Account, launched late 2022). Vanguard and Empower have publicly stated they do not plan to offer crypto in core 401(k) menus. Some plans permit indirect exposure through a self-directed brokerage window that can hold spot Bitcoin ETFs.

Step by step

1Check whether your current 401(k) plan offers a self-directed brokerage window (often called BrokerageLink at Fidelity or PCRA at Schwab); this is the fastest existing path to spot Bitcoin ETF exposure without waiting for the DOL rule.
2Read your Summary Plan Description (SPD) and the latest fee disclosure (404a-5 notice) to confirm what alternative assets, brokerage windows, or digital asset sleeves your plan permits today.
3If you want direct Bitcoin in a 401(k) and your employer uses Fidelity as recordkeeper, ask HR whether the Digital Assets Account (DAA) is enabled and what the contribution cap is (typically 20%).
4If your plan has no crypto option, consider opening or rolling old 401(k) balances into a self-directed IRA at Fidelity, Schwab, or Vanguard, where spot Bitcoin and Ether ETFs are already available with no employer approval needed.
5Track the DOL's 180-day deadline (around February 2026) for new guidance on alternatives in participant-directed plans, and watch for a proposed fiduciary safe harbor.
6Size any crypto allocation conservatively against your full retirement balance, and remember the same 10% early-withdrawal penalty and ordinary income tax rules apply inside the 401(k) wrapper.
7Document your investment decisions in writing if you are a plan sponsor or fiduciary; the executive order does not eliminate personal liability under ERISA section 404.

What works in your favor

The May 28, 2025 rescission of DOL Compliance Assistance Release 2022-01 removes the 'exercise extreme care' warning that effectively chilled most 401(k) crypto offerings for three years.
The executive order's 180-day deadline forces the DOL to issue concrete guidance by early February 2026, ending years of regulatory ambiguity for plan sponsors.
A future DOL safe harbor could give plan sponsors legal cover to add a curated crypto sleeve without facing the wave of ERISA lawsuits that hit early adopters.
Participants with a self-directed brokerage window in their 401(k) can already buy spot Bitcoin ETFs like IBIT or FBTC (0.25% expense ratio) without waiting for any new rule.
The order treats crypto alongside private equity and real estate, signaling regulators see it as a legitimate alternative asset class rather than a fringe gamble.

Watch out for

No plan is required to add crypto, and most large recordkeepers (Vanguard, Empower) still refuse to offer it inside core 401(k) menus.
ERISA fiduciary duty still applies, so plan sponsors who add crypto can be personally sued if the allocation harms participants.
Fidelity's Digital Assets Account caps Bitcoin at 20% of contributions and balance, and your employer must opt in before you can use it.
Crypto inside a 401(k) carries the same 10% early-withdrawal penalty before age 59 1/2 plus ordinary income tax, even if you only swap BTC for cash inside the plan.
The August 2025 order is a directive to regulators, not a rule change yet, so the actual DOL safe harbor could take 12-24 months and may be narrower than the headlines suggest.

Common questions

Does the Trump executive order force my 401(k) to offer crypto?

No. The August 7, 2025 executive order directs the DOL, Treasury, and SEC to reexamine guidance that discouraged alternative assets in 401(k) plans, but it does not require any plan to add them. Your employer's plan sponsor still chooses the menu, and ERISA fiduciary duties still apply. This is educational only, not financial advice.

What exactly did the August 7, 2025 executive order do?

It instructed the Department of Labor to clarify its position on alternative assets in participant-directed defined contribution plans within 180 days, and asked Treasury and the SEC to coordinate on rules that may be needed. Alternative assets are defined broadly to include private equity, real estate, digital assets, infrastructure, and lifetime income products. The order itself changes no rule on its own.

When was the Biden-era crypto warning rescinded?

The Department of Labor rescinded Compliance Assistance Release 2022-01 on May 28, 2025 via Compliance Assistance Release 2025-01. The 2022 release had told fiduciaries to exercise extreme care before adding cryptocurrency. The 2025 release returns to a neutral, principles-based standard under ERISA section 404.

Can I buy Bitcoin in a Fidelity 401(k) today?

Only if your employer has opted into the Fidelity Digital Assets Account (DAA), which launched in late 2022 and remains the only major recordkeeper offering direct Bitcoin in a 401(k). The DAA caps Bitcoin at up to 20% of contributions and 20% of the account balance, with rebalancing if it drifts above. Most employers have not added it.

What about spot Bitcoin ETFs inside a 401(k)?

Spot Bitcoin ETFs like BlackRock IBIT (0.25% expense ratio after waiver) and Fidelity FBTC (0.25%) launched in January 2024 and are technically eligible for 401(k) brokerage windows. But most 401(k) core menus are curated lists chosen by the sponsor, and few have added a spot crypto ETF. A self-directed brokerage window in your plan, if offered, is the more common path.

Is crypto in an IRA easier than in a 401(k)?

Yes, generally. A self-directed IRA at Fidelity or Schwab can hold spot Bitcoin ETFs today with no employer approval needed, and the executive order does not affect IRA rules at all. The 401(k) path requires your plan sponsor to add the option, which most have not done.

What happens to my crypto 401(k) holdings if I leave my job?

You can roll the assets into an IRA, where you would typically liquidate the crypto position and repurchase ETF or spot exposure on the IRA side. Direct in-kind transfer of plan-custodied crypto to an outside IRA is rare and depends on the recordkeeper. Check Form 5498 reporting and the plan's distribution policy before initiating.

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