Labor Dept 401(k) Crypto Plan Skips Any Market-Cap Floor

The Labor Department's proposal to let cryptocurrencies into 401(k) retirement plans comes with a notable blank space: no minimum market capitalization. Nothing in the measure bars tokens of any size from being considered, according to tokenpost.com. The department handed the proposal over for final review on Thursday, Nov. 5.

It also doesn't name names. The proposal lists no specific cryptocurrencies, and it sets no market-cap threshold that a token would have to clear to qualify. That leaves the door open on paper, even if the practical path in is narrow.

Plan managers could weigh a lot before letting a coin anywhere near retirement money: performance history, fees, liquidity, valuation, benchmarks and investment complexity. Bitcoin (BTC) and Ether (ETH) look better positioned than smaller tokens because their markets are deeper and investment products already exist around them. Smaller coins face steeper hurdles if they lack track records, trading depth or reliable ways to be priced. Crucially, the proposal doesn't turn any of those factors into hard requirements.

The likeliest first arrivals probably won't hold tokens directly. Crypto exchange-traded funds and managed funds fit existing custody and account-management systems more closely than direct-token products do, which could push them to the front of the line. Some investment options could show up in 2027, with broader coverage landing around 2028.

The proposal isn't final. It still has to clear White House review and further procedural steps before anything changes in practice. And retirement plan fiduciaries would keep their existing duties, along with the litigation exposure that comes with them.