US 401(k) Proposal Sets No Market Cap Threshold for Digital Assets, Experts Expect Crypto Options to Emerge Starting in 2027

Odaily reports that the U.S. Department of Labor's proposal does not restrict which digital assets can be included in retirement plans, nor does it set a minimum market cap threshold, and it requires plan administrators to consider investment performance, fees, liquidity, valuation, benchmarks, and complexity. Experts say smaller-cap tokens may face greater challenges due to limited track records, insufficient liquidity, and other risks.

Teresa Goody Guillén, managing partner at Bellementis PLLC, said Bitcoin and Ethereum may be the first to enter 401(k) plans, but market cap is not the determining factor, and plan administrators still need to demonstrate that investment choices are prudent. She expects ETFs and managed funds may launch earlier than direct holding of crypto assets.

Bernardo Brites, co-founder and CEO of Trace Finance, expects crypto investment options may begin to appear in 2027, followed by large employers launching ETFs, and broader availability in retirement funds by 2028. He said existing brokerage channels may move first, while legal uncertainty and factors such as custody and recordkeeping systems may slow the process. (Cointelegraph)