Democrats Oppose Labor Department's Proposal to Introduce Cryptocurrency into 401k Plans

Odaily Odaily News US congressional Democrats strongly oppose the Labor Department's proposal to allow 401k retirement plans to invest in cryptocurrencies, private credit, and private equity assets, stating that the rule would expose approximately $14.2 trillion in 401k retirement savings to high-risk and complex assets.

Senators Bernie Sanders, Elizabeth Warren, and Representative Bobby Scott stated in a joint letter that high-risk assets are highly volatile. For example, Trump's MEME token, which hit over $75 per coin in January 2025, has now fallen to $2. The letter also noted that the proposal could lead to higher fees for workers and weaken long-term returns. In response, the Trump administration stated that the new rules would provide workers with a more diverse range of investment options. (The Guardian)