Crypto in 401(k) Plans?
As of today, August 8, 2025, the topic of including cryptocurrencies in 401(k) retirement plans is still a hot potato.
Here's the lowdown:
- Limited Adoption: A few 401(k) providers, like Fidelity, have dipped their toes into offering Bitcoin as an investment option since 2022, but it’s not widespread. Most plans stick to traditional assets like stocks, bonds, and mutual funds due to regulatory caution and volatility concerns.
- Regulatory Fog: The U.S. Department of Labor has been skeptical, issuing guidance in 2022 urging fiduciaries to think twice before adding crypto due to its speculative nature. No major regulatory green light has emerged by today, keeping crypto in a gray area for retirement plans.
- Employer Hesitation: Employers are wary of the risks—crypto’s wild price swings and security issues (like hacks) make it a tough sell for risk-averse plan sponsors.
- Growing Interest: Despite the hurdles, employee interest is rising, especially among younger workers. Surveys (pre-2024) show about 20% of millennials want crypto in their 401(k)s, pushing some providers to explore options.
- Alternatives Exist: For those keen on crypto, self-directed IRAs are a more common route, offering more flexibility but requiring savvy management.
The takeaway?
Crypto in 401(k)s is still niche, with regulatory and market risks slowing its roll. If you’re eyeing it, do your homework and maybe stick to a small slice of your portfolio.
