The rules for adding cryptocurrency options to employer-sponsored retirement plans have shifted significantly in recent years. In May 2025, the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) rescinded its 2022 "extreme care" guidance, which had discouraged plan fiduciaries from including cryptocurrency in 401(k) menus. The EBSA clarified that this prior language deviated from the Employee Retirement Income Security Act (ERISA) and reaffirmed a neutral, principles-based approach—neither endorsing nor disapproving of crypto in retirement plans (dol.gov).

As a result, employers now have greater discretion, but must continue to adhere to strict fiduciary standards.

For employers evaluating digital assets in retirement plans, the stakes are higher than ever. For more on employer-focused trends and compliance topics, visit our 401(k) resources. For an overview of our approach to modern 401(k) plans, visit Basic Capital.

The Short Answer: What Is Fidelity’s Digital Assets Account (DAA)?

Fidelity’s Digital Assets Account (DAA) is a 401(k) investment option that allows participants to allocate a portion of their retirement savings to Bitcoin. Introduced in 2022, the DAA positioned Fidelity as a leader in integrating digital assets into workplace retirement plans (cnbc.com). As the largest provider of workplace retirement accounts in the U.S., Fidelity’s entry into digital assets signaled a major industry milestone.

Fidelity’s DAA is among the first mainstream digital asset options for employer-sponsored 401(k)s.

Employers who work with Fidelity can choose to add the DAA to their investment lineup—giving participants direct access to Bitcoin within a regulated plan environment.

What to Verify About Fidelity’s DAA (Before You Decide)

It’s a core due-diligence step for every employer: Before offering crypto in your retirement plan, what exactly should you check about Fidelity’s DAA?

According to Fidelity’s own risk disclosure, investing in digital assets like Bitcoin presents unique risks not found in traditional assets—including substantial and unexpected volatility, lack of government or private insurance, and potential for total loss. Participants must accept sole responsibility for understanding these risks, and employers have the discretion to set additional caps or thresholds on allocations to further limit exposure.

Employers should confirm eligibility, contribution and allocation limits, opt-in process, disclosure delivery, and participant support models before adding the DAA.

For more on how to approach risk, see our guide to risk controls for crypto in 401(k) plans: caps, eligibility & auto-features.

How the DAA Works: Access, Custody, and Operations

Fidelity’s DAA integrates directly with employer-sponsored 401(k) plans, allowing eligible participants to allocate a portion of their contributions to Bitcoin. The platform is managed by Fidelity Digital Assets, which provides institutional-grade custody, real-time trading, and secure settlement.

Fidelity combines its operational and technical infrastructure with dedicated blockchain expertise to deliver a differentiated offering for institutional investors. The DAA maintains a blend of Bitcoin and short-term money market funds to allow daily liquidity for participant transactions.

Security features include multi-tiered protocols, cold storage, and 24/7 dedicated support.

For employers, this means operational safety is backed by the same standards that apply to Fidelity’s broader retirement business.

To learn more about compliance, see our resource on how to offer crypto in a 401(k) without breaking ERISA.

Sponsor Controls: Decision Points for Employers

Adding crypto to your 401(k) menu isn’t just about employee demand—it’s a fiduciary decision that carries legal weight. Under ERISA, fiduciaries must curate investment menus “with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent man acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims” (dol.gov).

Employers should establish clear eligibility, set prudent caps on allocations, document the opt-in process, and implement strong participant communications.

Ongoing monitoring and regular reviews are essential to keep the offering aligned with participant interests and regulatory expectations.

Case studies demonstrate that ongoing education and transparent communication help participants make informed decisions and mitigate misunderstandings.

For a policy, process, and provider checklist, see crypto in the 401(k): policy, process & provider checklist for employers.

Operational Considerations: Support, Reporting, and Education

Offering digital assets in a retirement plan brings new operational pressures. Employers must make sure participants have access to quality support and clear reporting—while also addressing the greater need for participant education on the unique risks of crypto.

Fidelity backs its DAA offering with dedicated client service representatives providing 24/7 support and a full suite of educational resources.

While no specific statistics on participant education outcomes in crypto retirement plans were located, industry consensus is that education is crucial given the complexity and volatility of digital assets.

For more on due diligence, visit our 20 due-diligence questions to ask a crypto 401(k) provider.

How to Evaluate Any Crypto 401(k) Option: Criteria Checklist

A sound evaluation framework is key for plan sponsors. The EBSA’s May 2025 guidance underscores that fiduciaries should evaluate any investment “by considering all relevant facts and circumstances,” and that decisions will be “necessarily context specific” (dol.gov).

The most important criteria include: institutional-grade custody, transparent fees, strong participant controls, comprehensive participant education, ongoing monitoring, and provider support.

For a full checklist, see our crypto in the 401(k): policy, process & provider checklist for employers.

Alternatives by Criteria: Models and Features to Compare

Employers have choices beyond direct Bitcoin exposure. While direct investment via options like Fidelity’s DAA offers maximum upside and risk, other models—such as crypto-related mutual funds or ETFs—provide indirect exposure with different risk profiles.

It is generally understood that direct investments carry higher volatility and regulatory uncertainty, while indirect approaches may offer diversified exposure and professional management.

Notable platforms such as Bitwage and ForUsAll offer different approaches, ranging from payroll-integrated crypto allocations to curated digital asset investment menus. ForUsAll distinguishes itself by providing a curated menu of digital assets and an emphasis on participant education, helping lessen the complexity for employers and employees alike.

For a full comparison of Bitcoin ETFs versus direct crypto, see Bitcoin ETFs vs. direct crypto in a 401(k): what’s different for sponsors?

Next Steps for Employers: Get Started with a Crypto-Ready 401(k)

As the regulatory environment shifts and more providers like Fidelity Investments enter the space, employer interest in crypto retirement plans continues to grow. While specific adoption statistics are unavailable, recent regulatory changes and new product offerings indicate increasing momentum for digital assets in retirement plans.

Employers considering crypto 401(k) options should begin with a careful evaluation, detailed participant education, and a strong compliance focus.

Ready to take the next step? Get started (for employers).

Compliance Footer

This content is for informational purposes only and is not legal, tax, investment, or compliance advice.

References

U.S. Department of Labor. (2025, May 28). EBSA Rescinds Compliance Assistance Release 2022-01. https://www.dol.gov/newsroom/releases/ebsa/ebsa20250528?utm_source=openai

Fidelity Investments. (n.d.). Crypto Asset Risk Disclosure. https://www.fidelity.com/crypto/disclosure?utm_source=openai

Fidelity Investments. (2022, November 4). Fidelity forusall offering 401k investors access to cryptocurrency. CNBC. https://www.cnbc.com/2022/11/04/fidelity-forusall-offering-401k-investors-access-to-cryptocurrency.html?utm_source=openai

Fidelity Investments. (2022). Press Release: Industry’s First-of-Its-Kind Bitcoin Offering for 401k Core Investment Lineup. https://newsroom.fidelity.com/press-releases/news-details/2022/Fidelity-Investments-Advances-Leading-Position-as-Digital-Assets-Provider-with-Launch-of-Industrys-First-of-Its-Kind-Bitcoin-Offering-for-401k-Core-Investment-Lineup/default.aspx?utm_source=openai