Democrats Oppose DOL Plan to Open $14.2 Trillion 401(k)s to Crypto and Private Assets
Updated
Updated · The Guardian · Jun 2
Democrats Oppose DOL Plan to Open $14.2 Trillion 401(k)s to Crypto and Private Assets
3 articles · Updated · The Guardian · Jun 2
$14.2 trillion in 401(k) savings would be exposed to crypto, private credit and private equity under a Labor Department proposal that Bernie Sanders, Elizabeth Warren and Bobby Scott called harmful to workers.
Their letter says the rule would strip long-standing investor protections, raise fees and legal risks, and channel retirement money into volatile assets that may not survive a court challenge.
Democrats pointed to Trump’s memecoin falling to $2 from more than $75 and to FBI-reported crypto fraud losses topping $11 billion in 2025 as evidence of the dangers.
The fight also carries a conflict-of-interest charge: Democrats cited Trump family crypto ventures that the Wall Street Journal said may have raised as much as $5 billion.
The Trump administration says the rule would broaden investment choice, with Acting Labor Secretary Keith Sonderling arguing plan managers should judge all products through a prudent process.