White House Tells 401(k)s to 'Send It'—Boomers Still Hodling Their Treasuries

The White House's regulatory gatekeepers have just rubber-stamped a Department of Labor proposal that could, theoretically, funnel a cool $12 trillion from America's 401(k) piggy banks into the wild west of alternative assets like crypto and private equity. The review, which kicked off on January 13, got the official nod on March 24. With that bureaucratic blessing, the DOL can now unleash the draft rule for public commentary, where the crypto faithful and the risk-averse will undoubtedly have a polite, measured debate in the coming weeks.

This whole saga started with an August 7, 2025 executive order from President Donald Trump, essentially telling federal agencies to stop being such buzzkills about letting "alternative" assets into the sacred, ERISA-governed retirement club. The order gave the DOL's benefits arm 180 days to draft new rules—a deadline that technically expired on February 3, but was delayed because, well, the White House had to check its work.

Fiduciary FUD, begone? Under current ERISA law, the suits managing retirement plans can get personally sued for picking lousy investments. The new rule is basically crafting a legal "ape in" shield, stating that offering degen-level volatile or illiquid assets won't automatically be a breach of duty—as long as there's some due diligence and a disclosure that probably no one will read.

Retirees are not exactly ready to degen. A survey of over 1,000 subscribers to a retirement-focused service (mostly folks aged 56-65) reveals that the idea of putting their golden years into a memecoin portfolio isn't exactly trending. 48% are against the proposal, while only 34% are for it. A whopping 80% said they're unlikely to allocate any 401(k) funds to alternatives at all. Even if given the chance, 78% would either avoid them completely or dip a single toe in with a 5% cap. Over 80% claim to know what these assets are, yet 85% think the average saver has no clue about the risks—a refreshing moment of self-awareness.

Meanwhile, in the UK, a survey by insurer Aviva shows Brits are slightly more adventurous, or perhaps just more resigned. 27% are open to having crypto in their pension, and 23% would consider yanking some or all of their pension to invest directly. Their reasons? Chasing alpha, betting on innovation, and diversification. Their fears? Losing their benefits, getting hacked, and the comforting thought that regulators have no idea how to protect them.

A classic regulatory reversal. The previous administration's DOL was basically the fun police, issuing guidance that strongly suggested fiduciaries avoid digital assets due to their volatility, the nightmare of pricing them, and the fact that custody solutions were still in their infancy. Trump's 2025 order did a full 180, framing wider investment choice as a matter of freedom and future security, and tasked multiple agencies with dismantling the old guardrails.

What comes next? Now, the DOL has to officially publish the rule, triggering a comment period where lobbyists, consumer advocates, and politicians will perform their usual theater. Finalizing the rule will take months, and any eventual rollout will likely be followed by the traditional American pastime: lawsuits.

Edited by Vivian Nguyen