As the retirement market shifts, many employers and employees are noticing new investment options, sometimes including cryptocurrency, within their 401(k) plans. This change is sparking questions among HR, finance leaders, and participants, especially as regulatory updates and headlines bring digital assets into focus. For more on workplace retirement trends, visit our 401(k) resources.

The Short Answer

Crypto is now showing up in some 401(k) plans because regulatory changes, including Executive Order 14330, which directed agencies to revisit guidance on alternative assets, have clarified how employers and providers may offer these options. In May 2025, the Department of Labor (DOL) rescinded earlier guidance that had strongly discouraged crypto in 401(k)s, restoring a neutral stance and reminding fiduciaries (plan sponsors) to evaluate all relevant facts and circumstances when considering such investments (mercer.com).

Based on GAO analysis of 2022 401(k) data published in 2024, crypto asset investments accounted for substantially less than one percent of the 401(k) market, according to the U.S. Government Accountability Office (GAO).

Crypto remains a rare feature in workplace retirement plans, and even where access exists, available data indicate that participant usage and balances remain very low.

What “Crypto in a 401(k)” Usually Means

It’s a common misconception that “crypto in a 401(k)” means employees can freely trade digital currencies within their retirement accounts. In reality, most plans that offer crypto do so through a digital asset account or self-directed brokerage window, enabling participants to allocate a small portion of their portfolio to assets like Bitcoin.

Providers such as Fidelity and ForUsAll are among the few that have rolled out these features, typically capping allocations at 5–20% of an account’s value and integrating additional controls like automated alerts if participants attempt to exceed plan-set caps.

For more detail on available 401(k) cryptocurrency investment options, see our dedicated guide.

Why Some Employers Add It (in Neutral Terms)

Employers may consider adding crypto to their 401(k) plans for several reasons: responding to employee demand, offering diversification beyond traditional asset classes, and staying competitive in the benefits marketplace. The regulatory landscape shifted in 2025 when the DOL rescinded its “extreme care” guidance, placing the responsibility squarely on fiduciaries to evaluate risks and suitability based on their workforce and plan objectives (mercer.com).

A significant trend in the industry is growing institutional acceptance of digital assets, with recent institutional surveys reporting that 94% of institutional investors believe in blockchain’s long-term value and 86% have or plan digital asset exposure. Industry analysts note that diversification and future-focused benefits offerings are common motivators.

For a deeper dive into decision factors and regulatory considerations, review our policy and process checklist for employers.

How to Check What Your Plan Offers (Generic Steps)

If you’re wondering whether your workplace retirement plan offers cryptocurrency, here’s how to find out:

1. Review Your Summary Plan Description (SPD): This document outlines all investment options available through your plan. Crypto options, if present, will be listed here or in supplemental materials.

2. Contact Your HR Department or Plan Administrator: Most plans still do not offer crypto options (GAO, 2024), so reaching out directly is essential for up-to-date information.

3. Look for a Self-Directed Brokerage Window or Digital Asset Account: As of 2024, about 44% of Vanguard participants were offered a self-directed brokerage option, though only 1% used it and only 2% of plan assets were invested this way (corporate.vanguard.com).

Even where a brokerage window is available, most participants do not use these features, so direct confirmation from your plan’s HR or administrator is important.

For individualized support, see our participant resources.

Opt-In/Out and Who to Contact

Employees are almost never defaulted into cryptocurrency investments, they must actively opt in if such options are available. To change your investment lineup, log in to your plan’s participant portal or contact your HR or plan administrator. They will provide details about eligibility, process, and any caps on crypto allocations.

Providers like Fidelity and ForUsAll each have their own limits and procedures, so it’s important to clarify the specifics with your plan administrator.

Opt-in is always required; employees are not defaulted into crypto options.

If you have additional questions, your HR department or plan administrator is the best first stop for guidance.

Risks and Fees (Short, Plain Language)

The most important thing to understand about crypto in your 401(k) is the risk: digital assets are highly volatile and can experience significant price swings. In addition to day-to-day market swings, macroeconomic trends and overall sentiment can also impact crypto asset performance, increasing uncertainty for retirement savers. The DOL’s current stance is neutral, but fiduciaries are still required to weigh all facts and act prudently. As the DOL clarified in May 2025, “Fiduciaries must consider all relevant facts and circumstances when evaluating potential investments,” which includes assessing volatility, security, and regulatory uncertainty (mercer.com).

Fees for crypto investments are often higher than for standard mutual funds, due to custody, transaction, and compliance costs.

For more on risk controls for crypto in 401(k) plans, see our dedicated resource.

HR Box: How to Answer Employee Questions (Short)

It’s common for employees to ask, “Can I buy crypto in my 401(k)?” or “Is this a good idea?” Here’s a response HR leaders can share:

“Some 401(k) plans now allow limited crypto investing, but it’s rare and comes with higher risk and fees. If you’re interested, review your plan documents, since most plans do NOT include crypto by default, and speak with HR to learn what’s available and whether it’s a good fit for your goals.”

For employees interested in requesting new options, share our employee request template.

CTAs

Employers and plan sponsors considering crypto options should review the latest DOL guidance and consult with legal and compliance teams before making changes. To explore scalable, modern 401(k) solutions that prioritize transparency and education, you can get started with Basic Capital.

Employers should also regularly review industry resources for regulatory updates and best practices.

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

References

Government Accountability Office. (2024). 401(k) Plans: Industry Data Show Low Participant Use of Crypto Assets Although DOL's Data Limitations Persist. https://www.gao.gov/products/gao-25-106161

Mercer. (2025). DOL Axes Earlier Warning About Cryptocurrency in 401(k) Plans. https://www.mercer.com/insights/law-and-policy/dol-axes-earlier-warning-about-cryptocurrency-in-401-k-plans/

Vanguard. (2025). How America Saves Report. https://corporate.vanguard.com/content/dam/corp/research/pdf/how_america_saves_report_2025.pdf

AInvest. (2025). Crypto 401(k): Paradigm Shift in Retirement Investing. https://www.ainvest.com/news/crypto-401-paradigm-shift-retirement-investing-2512/

arXiv. (2025). Macroeconomic Sentiment and Cryptocurrency Returns. https://arxiv.org/abs/2512.02029