Analysis: The new regulations for the U.S. 401(k) retirement plan open the door for altcoins, but there are still entry barriers in the short term

The proposed rule allowing alternative assets such as cryptocurrencies to enter 401(k) retirement plans has been submitted to the White House for final review on November 5. The proposal does not limit the types of cryptocurrencies that can be included, nor does it set a minimum market capitalization threshold, meaning that altcoins and small to mid-cap tokens may also have the opportunity to enter U.S. retirement investment plans in the future.

However, industry insiders point out that asset management firms still need to comprehensively assess performance, fees, liquidity, valuation, benchmark indicators, and investment complexity when selecting investment targets. Bitcoin and Ethereum, with their mature markets and investment products, are expected to gain access first, while small to mid-cap tokens may face higher barriers due to insufficient historical data, limited liquidity, and lack of reliable valuation benchmarks.

In addition, experts expect that cryptocurrency ETFs and managed funds will enter 401(k) plans before direct holding products, as the former are easier to adapt to existing custody and account management systems. The industry anticipates that some cryptocurrency investment options may begin to be implemented in 2027, with further expansion of coverage expected around 2028.

The proposal still needs to complete the White House review and subsequent legislative processes, and it will not completely exempt retirement plan managers from fiduciary responsibilities and litigation risks.