U.S. Democrats Oppose Proposal to Allow 401k Investments in Cryptocurrency

U.S. Democrats have expressed strong opposition to a proposal by the U.S. Department of Labor that would permit 401k retirement plans to invest in cryptocurrencies, private credit, and private equity assets. According to Odaily, the lawmakers argue that this rule could expose approximately $14.2 trillion in 401k retirement savings to high-risk and complex assets. Senators Bernie Sanders, Elizabeth Warren, and Representative Bobby Scott highlighted in a joint letter that high-risk assets are subject to significant volatility. They cited the example of U.S. President Donald Trump's MEME token, which peaked at over $75 per token in January 2025 but has since fallen to $2. The letter also warned that the proposal might lead to higher fees for workers and potentially weaken long-term returns. In response, the Trump administration stated that the new rule would offer workers more diversified investment options.