Bloomberg: Trump Pushes to Include Cryptocurrency in Pension Accounts, But Still Faces Risk of Benefit Lawsuits

According to Bloomberg, for employers with a legal obligation to oversee employees' 401(k) investments, potential litigation risks may hinder U.S. President Donald Trump's efforts to include more cryptocurrencies in employee retirement accounts. The U.S. Department of Labor has rescinded guidance from the Biden administration that warned corporate retirement plans against allocating digital assets. This is part of a broader policy shift by the White House aimed at opening 401(k) accounts to alternative assets, including private equity, especially as Trump-backed companies increase their Bitcoin investments. Currently, crypto assets account for less than 1% of the $9 trillion 401(k) market, which has traditionally been almost entirely focused on stocks and bonds. Note: Benefit litigation refers to legal actions brought by employees, retirees, or their representatives against employers, pension plan managers (trustees), or related institutions regarding employee benefit plans such as pensions, 401(k)s, and healthcare.