Crypto in Your 401(k)? 🤯

by

//x.com/alexforehand0″>Alex Forehand

and

Michael Handelsman

for

Kelman.Law

. (They’re probably already updating their LinkedIn profiles.)

This isn’t just a little tweak around the edges, you understand. This is like deciding to let a family of badgers move into your attic. The federal government has, effectively, opened a new gateway for more than 90 million Americans to *accidentally* gain exposure to crypto through their employer-sponsored savings. It’s all very…efficient.

A Historic Expansion of Retirement Investment Options

//www.ici.org/statistical-report/ret_25_q1#:~:text=Americans%20held%20$12.2%20trillion%20in,e”>$9 trillion

401(k) market to crypto could prove transformative, both for individual portfolios and for the broader blockchain economy. Or it could just be another Tuesday. The order also directs the Department of Labor, Treasury, and SEC to develop clear guidance. Which, let’s be honest, will probably involve a lot of committees, a lot of meetings, and a lot of very expensive consultants.

Key Regulatory Actions in the Executive Order

The executive order lays out a series of specific regulatory steps, most of which must be taken within 180 days. Which, in government time, translates to sometime next decade. Prepare accordingly.

Reexamination of ERISA Guidance

The Secretary of Labor must review past guidance on fiduciary duties as it relates to asset allocation funds. This review will consider whether to rescind the DOL’s December 21, 2021 Supplemental Private Equity Statement, which imposed cautionary limits on…well, everything, apparently.

Clarification of Fiduciary Standards

  • Establishing criteria for how fiduciaries should weigh potentially higher fees against the goals of higher long-term returns and portfolio diversification. (Spoiler: the higher fees will win.)
  • Proposing rules, regulations, or guidance-possibly including safe harbors-to reduce uncertainty over fiduciary duties. (Translation: trying to cover their own backsides.)
  • Prioritizing measures to reduce ERISA litigation risk. (Because suing people is so *last* century.)

Interagency Coordination and SEC Involvement

The DOL will consult with the Treasury Department, SEC, and other regulators to ensure consistent rules and to explore parallel regulatory changes. This is where things go to die, slowly and quietly.

allowing innovation while protecting investors and meeting ERISA obligations. Good luck with that.

Our Take

At Kelman PLLC, we view this executive order as a turning point in both retirement investing and digital asset regulation. For plan sponsors, asset managers, and fintech providers, now is the time to prepare. That means developing compliant product offerings, designing participant education programs, and staying ahead of evolving regulatory guidance. (And billing a lot of hours.)

With 90 million Americans now potentially gaining crypto exposure through their retirement accounts, the intersection of digital assets and long-term savings just became one of the most important frontiers in financial law. Also, possibly a slight disaster. 😬

Kelman PLLC continues to monitor developments in crypto regulation across jurisdictions and is available to advise clients navigating these evolving legal landscapes. For more information or to schedule a consultation, please contact us.

This article originally appeared at Kelman.law.

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2025-08-11 08:59