Crypto in 401(k)s Moves Closer as FinCEN, Fed Drop $250 Travel Rule Plan

Author: Crypffalo Research · 03:54 07/11/2026

The Labor Department's final rule easing crypto into 401(k) plans has reached the White House for review, while FinCEN and the Fed withdrew a plan to cut the travel rule threshold from $3,000 to $250.

Crypto in 401(k)s Moves Closer as FinCEN, Fed Drop $250 Travel Rule Plan

The Trump administration took two crypto-friendly steps on Friday. The Labor Department's final rule making it easier for 401(k) plans to offer alternative assets, including cryptocurrencies, has reached the White House for its last review.

At the same time, the Treasury's Financial Crimes Enforcement Network (FinCEN) and the Federal Reserve withdrew a plan to lower the cross-border "travel rule" threshold from $3,000 to $250. The existing $3,000 threshold stays in place.

Key takeaways

401(k) rule: The White House Office of Information and Regulatory Affairs (OIRA) received the final rule on Nov 5 and classified it as economically significant.
What it does: It gives plan fiduciaries a legal safe harbor if they weigh six factors when picking investments, crypto included.
Travel rule: FinCEN and the Fed scrapped a proposal dating back to 2020, effective Nov 9.
Market: Bitcoin traded near $75,800 late Friday (UTC), after briefly slipping below $75,000 earlier in the session.
Caveat: The final 401(k) rule text has not been published and has no effective date yet.

The 401(k) rule: a door, not a mandate

The Labor Department proposed the rule on March 30 and collected thousands of comments before the June 1 deadline. The final version is titled "Fiduciary Duties in Selecting Designated Investment Alternatives," under rule identifier 1210-AC38.

The rule does not favor any asset class. Instead, it lays out a process fiduciaries can follow to show they acted prudently, built around six factors:

Performance after fees, adjusted for risk.
Costs versus expected benefits.
Liquidity at the plan and participant level.
Valuation methods.
A meaningful benchmark.
Product complexity.

Following that process creates a presumption that the fiduciary met its duty of prudence under ERISA. That matters because litigation risk has long kept employers away from crypto.

Timeline of the 401(k) rule and travel rule in 2026

Bitcoin and Ether first, altcoins face hurdles

The proposal does not name specific tokens or set a market-cap floor. Still, experts quoted by Cointelegraph expect Bitcoin and Ether to come first thanks to their deep markets and existing ETFs.

Smaller tokens may struggle on track record and liquidity. Specialists also expect ETFs and managed funds to reach 401(k) menus before direct coin holdings.

Travel rule: the $3,000 threshold stays

The travel rule requires financial institutions to collect and pass on sender and recipient details for qualifying transfers. The 2020 proposal would have cut the threshold to $250 for international transfers and written crypto explicitly into the rules.

It drew nearly 3,000 comments, many raising financial privacy concerns. The agencies cited the time elapsed and changes in the digital asset industry, but left the door open to future rulemaking.

What it means for crypto markets

Both moves are constructive on policy, but they are unlikely to reverse the short-term downtrend on their own. Bitcoin is still under pressure from the tech-stock selloff and this week's ETF outflows.

Bull case: The 401(k) rule is published soon and plan providers start adding Bitcoin and Ether ETFs, creating steady long-term inflows.
Risk case: The review drags on, or plans stay cautious about volatility, so real-world adoption comes slower than hoped.

The rule opens a door; no employer is required to offer crypto.

What to watch next

When the White House finishes its review and publishes the final 401(k) rule.
Nov 9: the travel rule withdrawal takes effect.
How major retirement plan providers respond with crypto products.
Next week's Bitcoin ETF flows and the economic calendar.

Frequently Asked Questions

Can US workers already buy crypto in their 401(k)?

Not widely. The rule is still under review, and each employer decides whether to add crypto options.

What is the travel rule?

It requires financial institutions, including US crypto exchanges, to pass along sender and recipient information on transfers of $3,000 or more.

Does the 401(k) rule pick specific coins?

No. It is asset-neutral, though experts expect Bitcoin and Ether to be chosen first.

*This content is for information only and is not financial advice.*

Tags: 401(k), US Policy, FinCEN, Bitcoin, Regulation

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