Sens. Bernie Sanders and Elizabeth Warren, along with Rep. Robert "Bobby" Scott, are pressing the Department of Labor to strike down a proposed rule that would open up 401(k) retirement plans to alternative assets, including cryptocurrencies. In a letter dated June 1 to Acting Secretary of Labor Keith Sonderling, the lawmakers said the proposed rule would expose people to more risk by establishing a safe harbor for fiduciaries who offer alternative investments in retirement plans. The push comes after President Donald Trump directed the agency to pave the way for the inclusion of alternative assets in retirement plans, following a March proposal by the Department of Labor that outlined steps 401(k) plan managers should take when considering incorporating digital assets, private equity, and real estate into investment portfolios.
Department of Labor Proposed Rule on Alternative Assets in 401(k) Plans
In March, the Department of Labor unveiled the proposed rule outlining steps 401(k) plan managers should take when considering incorporating alternative assets into their investment portfolios, including private equity, real estate, and digital assets. That came after President Donald Trump directed the agency in an executive order to pave the way for the inclusion of alternative assets in those retirement plans. The lawmakers said in their letter that the proposed rule "would strip long-held investor protections from retirement savers and encourage the use of more risky, complex, and expensive investments."
Lawmakers Cite Volatility, Fraud Data, and Trump Family Conflicts
The lawmakers raised concerns about digital assets' volatility, citing Trump's own memecoin, which hit an all-time high of over $73 but has since fallen to closer to $2 as of Tuesday, according to The Block's price page. Crypto scams are also apparent, the lawmakers said, citing a Federal Bureau of Investigation report that found that crypto-linked fraud losses reached a record high of over $11 billion in 2025. The lawmakers also took aim at the Trump family's conflicts of interest, including in crypto. In 2025, The Wall Street Journal reported that his family had amassed $5 billion in "paper wealth" following the launch of the World Liberty Financial token. "In the midst of these egregious conflicts, the DOL's proposed rule has the potential to boost the President's bottom line at the expense of ordinary workers and retirees," they said. "How can the American people trust regulations proposed by an Administration that conceivably stands to profit from them?" The Department of Labor did not immediately respond to a request for comment.
FAQ
What did Sens. Sanders and Warren ask the Department of Labor to do on June 1?
Sens. Bernie Sanders and Elizabeth Warren, along with Rep. Bobby Scott, sent a letter dated June 1 to Acting Secretary of Labor Keith Sonderling pressing the Department of Labor to strike down a proposed rule that would open up 401(k) retirement plans to alternative assets, including cryptocurrencies.
Why do the lawmakers oppose the proposed 401(k) rule?
The lawmakers said the proposed rule would expose people to more risk by establishing a safe harbor for fiduciaries who offer alternative investments in retirement plans, which would "strip long-held investor protections from retirement savers and encourage the use of more risky, complex, and expensive investments." They cited concerns about digital assets' volatility, crypto fraud losses that reached over $11 billion in 2025 according to an FBI report, and Trump family conflicts of interest in crypto.
What action did President Trump take regarding alternative assets in 401(k) plans?
President Donald Trump directed the Department of Labor in an executive order to pave the way for the inclusion of alternative assets in 401(k) retirement plans. Following that directive, the Department of Labor unveiled a proposed rule in March outlining steps 401(k) plan managers should take when considering incorporating alternative assets into their investment portfolios, including private equity, real estate, and digital assets.
