[DigitalToday reporter Jinju Hong (홍진주)] The U.S. retirement market is at a structural turning point. As the roughly $10 trillion 401(k) market is increasingly seen as likely to incorporate cryptocurrencies as regulated assets after long-running regulatory uncertainty, some expect the standing of digital assets could fundamentally change. CoinDesk, a blockchain media outlet, reported the details on Feb. 26 (local time).

The key is a shift in the regulatory stance. The U.S. Department of Labor (DOL), which oversees the Employee Retirement Income Security Act (ERISA) enacted in 1974, delivered a strong warning in March 2022 guidance against including cryptocurrencies in 401(k) plans. At the time, the DOL effectively put the brakes on such inclusion, citing volatility and fiduciary responsibility issues, and even suggested the possibility of investigations into providers that handled related products. The move created significant legal risks for asset managers and pension administrators, dampening market entry.

On May 28, 2025, the DOL officially withdrew the guidance. It acknowledged the prior interpretation did not fully align with ERISA's "principle of fiduciary discretion." On Aug. 7, 2025, President Donald Trump signed an executive order on "expanding access to alternative assets for 401(k) investors," placing cryptocurrencies in the formal category of alternative investments alongside private equity and real estate. The policy signal effectively shifted clearly.

The DOL has now proposed new rules to specify fiduciary standards and management procedures related to alternative-asset investments, and the proposal is under review by the White House Office of Management and Budget (OMB). The market expects future guidelines to include the scope of fiduciary duties, liquidity management standards, allocation limits within portfolios, and requirements for pricing and custody systems. This is expected to support the institutional incorporation of cryptocurrencies while also limiting excessive risk exposure.

Even if regulatory barriers are removed, cryptocurrencies are not expected to be added to 401(k) portfolios on a large scale immediately. That is because technical integration between the existing mutual fund-focused infrastructure and digital-asset custody systems, risk assessments by custodian banks, and approval procedures by investment advisers and plan sponsors must come first. In particular, fiduciary duties under the ERISA framework are applied very strictly, so asset managers need sufficient internal controls and risk-management frameworks.

Even so, some analysis suggests the structural characteristics of the 401(k) market could give cryptocurrencies new stability. Retirement pensions are a long-term investment structure centered on regular, automatic contributions rather than sharp inflows and outflows. Even during market downturns, automatic rebalancing and staged buying strategies work to cushion volatility. If such long-term, installment-style funds flow in, it could also raise the possibility that price volatility in the cryptocurrency market will gradually ease.

The market expects cryptocurrency options to start appearing in earnest in some 401(k) plans from 2026. They may initially be included at a limited share of total assets, but some see them potentially becoming a pillar of the U.S. retirement system over the long term if institutional trust builds.

If cryptocurrencies move beyond being viewed as speculative assets and are recognized as components of pension portfolios, it could be a turning point that fundamentally changes the nature of the digital-asset market.