Crypto’s Next Big Leap: Will 401(k)s Finally Join the Blockchain Revolution?

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CoinDesk Indices

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Happy Thursday, advisors!

In today’s newsletter, David Lawant, head of research at Anchorage Digital reviews crypto’s evolving role in 401(k)s, as regulatory clarity is poised to open up investments.

Then, in Ask an Expert, Kevin Tam answers questions about crypto adoption around the world, looking at the recent 13F filings.

Happy Reading.

Modernizing the nest egg: the past, present, and future of crypto in 401(k) plans

The United States retirement system is about to hit a major crossroad, folks. For over a decade, the $10 trillion 401(k) market kept crypto at arm’s length-mainly because no one could figure out what on earth to do with it, thanks to regulatory ambiguity and a heap of litigation concerns. But hold on tight, because the tectonic plates are shifting, and 2026 is looking like the year crypto gets a VIP pass into the club of American retirement plans. That’s right, crypto is about to go mainstream in your 401(k)-who saw that coming?

The regulatory shift from “extreme care,” to “principled neutrality,” to “democratizing access.”

Let’s get into the weeds, shall we? The Department of Labor (DOL) is the big kahuna responsible for keeping the retirement ship sailing smoothly. In March 2022, it issued Compliance Assistance Release No. 2022-01, which basically slapped a “do not enter” sign on crypto in retirement plans. They demanded fiduciaries handle crypto assets with “extreme care”-and, surprise, there were threats of investigations if anyone got a little too cozy with crypto.

Fast forward to May 28, 2025, and the DOL took a U-turn, rescinding that “extreme care” guideline with Compliance Assistance Release No. 2025-01. According to them, the 2022 guidance was “deviating from ERISA requirements,” which basically means they realized they made a mistake, and so they went back to playing it neutral, like Switzerland with a financial twist. No more categorical bans on specific assets-just a good old-fashioned, risk-based evaluation.

But the game-changer came when President Donald Trump signed Executive Order 14330 on August 7, 2025. It was titled “Democratizing Access to Alternative Assets for 401(k) Investors”-which is, as far as executive orders go, a fairly zesty title. This shift redefined how the government views alternative assets, and yes, crypto made the cut alongside real estate and private equity. Who would’ve guessed that crypto would be mentioned in the same breath as something as staid as real estate? Look out, real estate-crypto is coming for your retirement home.

Upcoming DOL guidance on alternative assets and what adoption could look like

The DOL is still working on a proposed rule about how fiduciaries should handle alternative assets, and it’s sitting in the Office of Management and Budget like a forgotten lunch in the break room. It’s not public yet, but given that the White House’s 180-day deadline has passed, we’re hoping it’ll be released soon. At this point, it feels like watching your favorite TV show drag out the season finale just to keep you hanging on.

For crypto specifically, the big question is how the upcoming fiduciary safe harbor will look. This “checklist” will supposedly protect fiduciaries from getting sued if things go south, as long as they follow the rules-requirements likely to include things like qualified custody and liquidity caps. Sounds like a fun summer project for someone, right?

Still, once the regulatory hurdle is cleared, the adoption process is likely to be slower than a tortoise on a lazy afternoon. But don’t worry, the 401(k) market is big, and slow-and-steady wins the race. This move into retirement accounts will probably feel more like a snowball slowly rolling down a hill than a rocket launch. But hey, crypto’s so volatile it might be a bit of both-prepare for some bumps along the way!

And here’s the kicker: because retirement participants are like that one friend who just keeps buying when the market tanks (they have no choice-bi-weekly contributions are non-negotiable), the 401(k) market serves as a natural “volatility dampener.” In other words, 401(k) participants will keep chipping in, regardless of whether Bitcoin is up or down, which could smooth out the wild ride ahead.

Unlike the fast-paced debut of spot exchange-traded funds (ETFs), the 401(k) transition will be more like watching grass grow, but rest assured, once it starts, it will slowly become a mainstay in American nest eggs by 2026. It’ll be like crypto moving into your grandma’s pension plan-it’ll happen, just not as quickly as you might want it to.

– David Lawant, head of research, Anchorage Digital

Ask an Expert

Q: What do Norges Bank and overseas hedge funds have in common?

Apparently, they both have a massive appetite for crypto. The overseas hedge funds from Hong Kong and the UK have been gobbling up spot bitcoin ETFs like a buffet at an all-you-can-eat sushi place. Laurore Ltd. now holds a 100% concentrated portfolio in IBIT. I bet you didn’t know there were hedge funds out there with a taste for bitcoin, did you?

South Korea’s National Pension Service also got in on the action, increasing its MSTR exposure to a whopping $93.6 million. Meanwhile, Ontario’s Investment Management is sitting pretty with only $3.5 million. Looks like someone is eating their veggies while others are snacking on candy.

Q: Is Canada’s bitcoin bet starting to cool off?

Oh, it’s definitely cooling off. National Bank of Canada slashed its MSTR stake by 51% in Q4 2025-probably a reaction to the stock’s price drop. It went from $659 million to $152 million. To make matters even juicier, the bank also holds $52.4 million in put options on MSTR. Talk about a hedge!

Q: What does the global regulator roadmap tell us about bitcoin’s trajectory into 2026 and beyond?

All signs point to legalization. The MiCAR framework is now live across the EU, and the US is rolling out its GENUIS Act (yes, that’s a real name). The UAE, Singapore, and Hong Kong are also busy building their own digital asset frameworks. Looks like crypto’s future just got a major stamp of approval. Hold onto your hats-2026 is going to be a wild ride!

– Kevin Tam, digital asset research specialist

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2026-02-26 19:17