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Sens. Bernie Sanders and Elizabeth Warren, joined by Rep. Bobby Scott, sent a letter dated June 1 to Acting Labor Secretary Keith Sonderling demanding the Department of Labor scrap a proposed rule that would open 401(k) retirement plans to alternative assets — including cryptocurrencies and private equity.
Why it matters
The proposed rule, unveiled in March, followed a Trump executive order directing the DOL to pave the way for digital assets in retirement portfolios. The senators argue the rule would create a "safe harbor" for fiduciaries that effectively strips long-standing investor protections from ordinary retirement savers, exposing them to "more risky, complex, and expensive investments." Their letter cites FBI data showing crypto-linked fraud losses hit a record $11.4 billion in 2025, and points to Trump's own memecoin — which peaked above $73 before collapsing to around $2 — as a live example of the volatility retirees would face. The lawmakers also raised Trump family conflicts of interest, noting the Wall Street Journal's reporting that the family amassed roughly $5 billion in paper wealth from the World Liberty Financial token launch.
Market impact
If the DOL retreats from the rule under political pressure, it would close off a potentially massive institutional on-ramp: U.S. 401(k) plans hold over $7 trillion in assets. A rollback would be a meaningful headwind for crypto adoption narratives tied to retirement capital. The political fight also signals that crypto's path into mainstream retirement infrastructure remains contested at the highest levels of U.S. legislative opposition.
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