Sens. Bernie Sanders and Elizabeth Warren are pressing the Department of Labor to strike down a proposed rule that would open up 401(k) retirement plans to alternative assets, including cryptocurrencies.
In a letter dated June 1 to Acting Secretary of Labor Keith Sonderling, the senators and top Democrat of the House Committee on Education and Workforce, Rep. Robert "Bobby" Scott, said the proposed rule would expose people to more risk.
"The proposed rule would establish a so-called safe harbor for fiduciaries who offer alternative investments in retirement plans," they said in the letter. "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 considering incorporating alternative assets into their investment portfolios, including private equity, real estate, and digital assets. That came after President Donald Trump directed the agency in an executive order to pave the way for the inclusion of alternative assets in those retirement plans.
The lawmakers' criticism spans several categories of alternative assets. The trio of lawmakers also raised concerns about digital assets' volatility, citing Trump's own memecoin, which hit an all-time high of over $73 but has since fallen to closer to $2 as of Tuesday, according to The Block's price page.
Crypto scams are also apparent, the lawmakers said, citing a Federal Bureau of Investigation report that found that crypto-linked fraud losses reached a record high of over $11 billion in 2025.
The lawmakers also took aim at the Trump family's conflicts of interest, including in crypto. In 2025, The Wall Street Journal reported that his family had amassed $5 billion in "paper wealth" following the launch of the World Liberty Financial token.
"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 said. "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.
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