Sanders, Warren urge Labor Dept. to scrap 401(k) crypto rule

Sens. Bernie Sanders and Elizabeth Warren are pressing the Department of Labor to strike down a proposed rule that would let 401(k) retirement plans hold alternative assets, including cryptocurrencies.

In a letter dated June 1 to Acting Secretary of Labor Keith Sonderling, the senators — joined by Rep. Robert "Bobby" Scott, the top Democrat on the House Committee on Education and Workforce — argued the proposal would expose retirement savers to more risk.

"The proposed rule would establish a so-called safe harbor for fiduciaries who offer alternative investments in retirement plans," they wrote. "This would strip long-held investor protections from retirement savers and encourage the use of more risky, complex, and expensive investments."

In March, the Department of Labor unveiled the proposed rule, outlining steps 401(k) plan managers should take when weighing alternative assets — including private equity, real estate, and digital assets. The move followed an executive order from President Donald Trump directing the agency to pave the way for those asset classes in retirement plans.

The lawmakers' critique extended beyond crypto. They also raised concerns about digital assets' volatility, pointing to Trump's own memecoin, which hit an all-time high above $73 before sliding to roughly $2 as of Tuesday, per The Block's price page. A tidy peak-to-pocket-change arc, all things considered.

Crypto scams were next, with the lawmakers citing an FBI report finding that crypto-linked fraud losses reached a record high of more than $11 billion in 2025.

The trio also took aim at the Trump family's crypto conflicts of interest. In 2025, The Wall Street Journal reported the family had racked up roughly $5 billion in "paper wealth" following the launch of the World Liberty Financial token — with the "paper" doing some heavy lifting in that figure.

"In the midst of these egregious conflicts, the DOL's proposed rule has the potential to boost the President's bottom line at the expense of ordinary workers and retirees," they wrote. "How can the American people trust regulations proposed by an Administration that conceivably stands to profit from them?"

The Department of Labor did not immediately respond to a request for comment.

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures. © 2026 The Block. All Rights Reserved. This article is provided for informational purposes only and is not offered or intended to be used as legal, tax, investment, financial, or other advice.