China's former officials have approved the "White House review" to open 401(k) retirement funds for cryptocurrency purchases—Is Bitcoin ready to be driven up by 12 trillion dollars in capital?

The proposal allowing cryptocurrencies and private equity in 401(k) retirement accounts has completed White House OIRA review. The official rules are expected to be announced within a few weeks. Once implemented, over $12 trillion in retirement funds will for the first time be legally open to alternative assets like Bitcoin.

(Background: Franklin Templeton teams up with Ondo Finance to launch a “Tokenized ETF” supporting 24/7 trading within crypto wallets)

(Additional context: Interactive Brokers has enabled “Crypto Transfer” functionality, allowing users to manage stocks and Bitcoin in one platform)

Crossing the final administrative hurdle—the Department of Labor’s (DOL) Employee Benefits Security Administration (EBSA) submitted a proposed rule for alternative asset investments, which has now completed review by the Office of Information and Regulatory Affairs (OIRA) under the White House Office of Management and Budget (OMB), confirmed by documents obtained by Bloomberg Law. OIRA review is the final step before federal rule publication, indicating the process is near completion. The DOL plans to release the proposed rule (NPRM) within weeks to months.

Executive Order as the Catalyst, 180-Day Timeline for Rulemaking

The timeline traces back to August 2025—President Trump signed an executive order instructing the DOL to reevaluate ERISA’s guidance on alternative assets within 180 days. ERISA has historically been interpreted as imposing strict prudence standards on high-volatility assets, making plan managers hesitant to include cryptocurrencies or private equity. This executive order aims to fundamentally loosen those legal restrictions.

Congress is also acting in parallel. Some Republican lawmakers are pushing legislation to codify the executive order’s intent into law, ensuring policy stability across administrations.

$12 Trillion Market, Largest Potential for Alternative Assets

The 401(k) is the most mainstream workplace retirement savings account in the U.S., with a current total exceeding $12 trillion and covering about 70 million workers. Currently, these funds are almost entirely invested in stocks, bonds, and mutual funds. If the rules are finalized, plan administrators will gain clear legal authority to allocate some funds to cryptocurrencies, private equity, infrastructure, real estate, and other alternative assets.

For the crypto industry, this means a potential demand surge— even if only 1% to 5% of retirement funds are allocated, the inflow could reach $120 billion to $600 billion.

Bitcoin Retreats 50%, Security Concerns Rise

There is a stark gap between policy benefits supporters envision and market realities. Bitcoin has fallen over 50% from its peak of about $126,000 in 2025, triggering strong opposition from some labor advocates and Democratic lawmakers—who argue that including highly volatile assets in retirement accounts exposes ordinary workers’ retirement security to disproportionate risks.

Once the DOL publishes the proposed rule, a public comment period (typically 60 to 90 days) will be initiated, during which all opinions will be formally recorded. If the final rule is to take effect, the timeline is estimated to be in the second half of 2026.

Timeline Overview

August 2025: Trump signs executive order directing DOL to reevaluate ERISA alternative asset guidance
End of January 2026: OIRA completes review
March 2026: Proposed rule (NPRM) expected to be announced
Second half of 2026 (estimated): Public comment period ends + final rule takes effect

The outcome of this policy race will determine whether cryptocurrencies can officially become mainstream in American retirement planning.